Monday 25 March 2019 4:24 AM UTC
LONDON March 25: Sainsbury’s and Asda have proposed to sell off between 125 and 150 supermarkets on the back of concerns raised by the Competition and Markets Authority (CMA) over the proposed merger.
A number of convenience stores and petrol stations are said to be axed, just days after the two supermarkets vowed to deliver £1 billion in savings to consumers if the takeover is given the green light.
In a statement, the CMA warned the takeover would lead to inflated prices for millions of shoppers.
However the two chains said if given the go-ahead, they would deliver £1 billion of lower prices annually by the third year post-completion and reduce prices by around 10% on everyday items.
Sainsbury’s said it will cap its fuel gross profit margin to no more than 3.5 pence per litre for five years; Asda will guarantee its existing fuel pricing strategy.
The two businesses are proposing to merge so that they can “lower prices for customers in an increasingly competitive market, while improving quality and service”.
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