ThisisBigBrother.com - UK TV Forums - Asda and Sainsbury's to merge in a £10 billion deal

ThisisBigBrother.com - UK TV Forums (https://www.thisisbigbrother.com/forums/index.php)

- Serious Debates & News (https://www.thisisbigbrother.com/forums/forumdisplay.php?f=61)

- - Asda and Sainsbury's to merge in a £10 billion deal (https://www.thisisbigbrother.com/forums/showthread.php?t=337768)

Asda and Sainsbury's to merge in a £10 billion deal

Quote:

J Sainsbury and Wal-Mart, the world's biggest supermarket retailer, are in advanced talks about a shock tie-up that would create ‎a more powerful rival to Tesco, the UK market leader.

Sky News can exclusively reveal that the two companies are in negotiations about combining Wal-Mart's Asda business with Sainsbury's, in a deal that would send shockwaves through the entire British retail industry.

Sources said an announcement could be made as early as Monday, or even sooner if the two sides are forced to accelerate their public disclosures.

It was unclear this weekend how a deal would be structured, including whether Wal-Mart would reverse Asda into Sainsbury's while taking a big stake in the combined group.

Another huge uncertainty surrounding any combination of the UK's second-largest and third-largest grocers would be their proposals to secure approval from the Competition and Markets Authority.

Some analysts believe a reduction in the pool of national food retailers of‎ major scale would be almost impossible to secure approval for without the disposal of many hundreds of stores.

One proponent of the tie-up suggested that the CMA's decision to wave through Tesco's recent £3.7bn takeover of Booker, the wholesaler, had ‎given a green light for others to explore indsustry-reshaping mergers.

The CMA is likely to look at store conflicts on a localised basis, according to one insider.

Britain's traditional retail industry is under enormous pressure from the prolific growth of online rivals which are not saddled by the fixed costs of bricks and mortar‎ players.

Asda and Sainsbury's have also faced a big challenge from the emergence of the German discounters Aldi and Lidl, ‎which have begun to build a big presence in the UK.

A tie-up would give the two British chains even greater buying power but would inevitably lead to greater scrutiny from regulators such as the Groceries Code Adjudicator, which was set up to protect small suppliers.

One source close to Wal-Mart said the merger would allow the two companies to invest in providing more products at lower prices.

A deal would be likely to require the blessing of the Qatar Investment Authority, which holds a 25% stake in Sainsbury's having bought into the chain more than a decade ago.

If concluded, a deal‎ would be the most significant in the UK's food retailing sector since Wm Morrison bought Safeway to give it a UK-wide presence in 2004.

Sainsbur‎y's has itself been acquisitive in recent years, snapping up Argos and examining takeovers of wholesale businesses such as Palmer & Harvey, which collapsed into administration last year.

The leadership of ‎a combined Asda and Sainsbury's would be an intriguing detail of a deal, with former Sainsbury's director Roger Burnley recently being promoted to become chief executive of the Wal-Mart-owned chain.

Mike Coupe, the Sainsbury's chief executive, is said to have been one of the driving forces behind the proposed merger.

The execution risks attached to a tie-up would be crucial to the fate of David Tyler, the Sainsbury's chairman, who has just seen an attempt to merge Hammerson, the commercial property company he chairs, abandoned after opposition from investors.

A second attempt to secure large-scale consolidation‎ in the retail industry would, analysts say, underline the belief that bigger companies will be better-placed to withstand the competitive threat from Amazon and other big digital retailers.

https://news.sky.com/story/sainsbury...erger-11349799

oh good for them i guess

10 billion is a lot of money though, you can buy several football clubs with that amount of cash

Maybe a Question mark at the end, Adam
As it may not be permitted.

Sainsburys-Argos
would keep it's own brand , as would Asda
so that's logical.

But Trade and Industry may want some stores sold off?
So at this stage its only a idea.

Quote:

Originally Posted by Nicky91 (Post 9974656)

oh good for them i guess

10 billion is a lot of money though, you can buy several football clubs with that amount of cash

Yes 10Billion pounds
is mega.
But AsdaWalmart
are a better value supermarket than more Expensive
Sainsburys - Argos

[One source close to Wal-Mart said the merger would allow the two companies to invest in providing more products at lower prices]

Its a Fact now that AsdaWalmart undercut Lidl and Aldi
on "some" products.

Sainsburys over charge
for many of their meals
But in AsdaWalmart a Top end food range meal
is around £3
or £4

does everyone say mega these days? i'm hearing it so often now also on german idols

Quote:

Originally Posted by Nicky91 (Post 9974689)

does everyone say mega these days? i'm hearing it so often now also on german idols

Yes Mega
due to the massive possible Cash deal.

Not an orange and green uniform for the poor staff

Quote:

Originally Posted by Rob! (Post 9974776)

Not an orange and green uniform for the poor staff

Its 3 Stores
Asda
& Sanisburys-Argos

The Next Update is 7AM Monday 30th April

A Union Boss is angry (from Sainsburys)
just on SkyNewsHD

He Demanding talks with both companies.......................

Hold On fella
its not official until 7 AM tomorrow morning

Ugh. Sainsbury's is actually good. I'm not going to be impressed if they turn it into a ****ty ASDA clone. Puke.

Quote:

Originally Posted by Toy Soldier (Post 9975522)

Ugh. Sainsbury's is actually good. I'm not going to be impressed if they turn it into a ****ty ASDA clone. Puke.

TS

No they are staying Separate stores

Quote:

Originally Posted by arista (Post 9975524)

TS

No they are staying Separate stores

Good :hmph:. Sainsbury's is the classy choice. Unless I'm feeling really fancy and then I go to waitrose :hee:

How quickly and greatly the world changes. It was not so long ago that Sainsbury's were making considerable financial donations to the Labour Party and ASDA doing the same for the Tories.

Quote:

Originally Posted by Toy Soldier (Post 9975539)

Good :hmph:. Sainsbury's is the classy choice. Unless I'm feeling really fancy and then I go to waitrose :hee:

:laugh:

Quote:

Originally Posted by kirklancaster (Post 9975553)

How quickly and greatly the world changes. It was not so long ago that Sainsbury's were making considerable financial donations to the Labour Party and ASDA doing the same for the Tories.

And mums were going to Iceland! I was in there 20 minutes ago and I only saw junkies :think:.

Quote:

Originally Posted by kirklancaster (Post 9975553)

How quickly and greatly the world changes. It was not so long ago that Sainsbury's were making considerable financial donations to the Labour Party and ASDA doing the same for the Tories.

Yes but these days
everything is on Hold
Brexit Factor.

This Deal
was set up in Secret
thats why that Union fella from Sainsburys was ANGRY. (ref : live on SkyNewsHD)
[Joe Clarke, national officer for Sainsbury's at the union Unite, told Sky News the potential deal
was an "absolute shocker", with "implications for tens of thousands of jobs".]

But this how Big Business works,

To Me AsdaWalmart
a year back or so was number 1 due
to a £300
50" 4k TV

No other store could match that

Quote:

Originally Posted by arista (Post 9975613)

This Deal
was set up in Secret
thats why that Union fella from Sainsburys was ANGRY. (ref : live on SkyNewsHD)

But this how Big Business works,

To Me AsdaWalmart
a year back or so was number 1 due
to a £300
50" 4k TV

No other store could match that

The cheapo supermarket TVs are literally not worth buying Arista... They are utter crap. Cheap LCD panel, dull and washed out picture. For a £300 budget you'd be much better buying a half decent quality 1080p telly than a cheap-as-chips 4k. :nono:

Quote:

Originally Posted by Toy Soldier (Post 9975653)

The cheapo supermarket TVs are literally not worth buying Arista... They are utter crap. Cheap LCD panel, dull and washed out picture. For a £300 budget you'd be much better buying a half decent quality 1080p telly than a cheap-as-chips 4k. :nono:

WRONG TS
its a LED panel
made by LG
no longer sold.

I have one
the Price was a loss leader
got new customers in that store.

I also have a 40"
Panasonic 4K LED TV
it matches that.

FACT

https://news.sky.com/story/sainsbury...orces-11353408

The CEO of Sainsburys
claims no stores will close?
Mike Coupe has said he wants both Head offices
to remain.
And prices should go down 10% once fully merged.

I am sure after a year or so it will change.

Mike will be the CEO
of Asda-Sainsburys-Argos.
And some Big Asda's will have a Argos in them , as well.

Assuming this all goes through etc.

If they aren't closing shops and trimming staff then the only way they can get the price reductions is by squeezing the suppliers, who are already being hammered. I don't think this is good news at all

Quote:

Originally Posted by bitontheslide (Post 9976572)

If they keep all the Supermarket
stores.
It sadly may means more Argos Stand alone
stores to close.
As Asda will have New Argos stores in them.

The Shares of Sainsburys keep going UP