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CMA Probe Into Sainsbury's-ASDA Merger 'Welcome'

Friday, August 24, 2018

GMB WELCOMES CMA INVESTIGATION INTO ASDA-SAINSBURY’S MERGER

The ramifications of the proposed merger not only affect choice, but the economic and social wellbeing of families and their communities says GMB union

GMB, Britain's general union, has welcomed the Competition and Markets Authority (CMA)  investigation into the proposed merger of ASDA and Sainsbury’s.

The UK's competition watchdog will look into whether the deal will mean less consumer choice, higher prices or worse service.

The combined group would be the UK's biggest retail chain with 2,800 stores and 31.4% of the grocery market.[1]

Gary Carter, GMB National Officer, said:

“GMB welcomes the CMA investigation.

“It is only right a deal this size - with all the implications for consumer choice, jobs and the high steet - is subject to proper and very detailed scrutiny. 

“Between them, ASDA and Sainsbury’s employee 330,000 people in the UK with combined profits of over £1.4 billion.

“The ramifications of the proposed merger not only affect choice, but the economic and social wellbeing of families and their communities. 

“Asda and Sainsbury’s say they intend to keep the current brands, run the supermarkets separately and that there will be no store closures.

“We hope the CMA will put this to the test. 

“The CMA is under no legal obligation to scrutinise the impact on jobs, but GMB strongly believes there is a moral obligation on them to seek assurances in that regard.

“Especially considering the size of the workforce, and the effect closure of stores, distribution centres and head offices would have on employees, local communities and the high street. 

“The high street and retail sector cannot keep on absorbing the job cuts and closures which are taking place every week.”

ENDS

Contact:  Gary Carter on 07738 958140 or GMB Press Office on 07958 156846 or at press.office@gmb.org.uk

Notes to Editors

[1] https://www.bbc.co.uk/news/business-45284885

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