UK's No 2 and No 3 supermarkets to merge

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Or will our shopping become cheaper because suppliers will have even less wiggle room when negotiating costs?

Although Britain's Competition and Markets Authority (CMA) said it was likely to review the deal, Sainsbury's shares jumped as much as 21 percent, hitting their highest since July 2014, and closed up 14.5 percent. Shadow Business Secretary Rebecca Long-Bailey told the House of Commons: "It's clear that a duopoly of the big supermarkets - Tesco, Asda and Sainsbury's - will now emerge, providing never-before-seen bargaining power". There's no room for a retailer like Asda in today's market. What that usually means is job losses or cuts to pay, terms and conditions which would be wholly unacceptable. "If they want convenience, they head to Amazon".

Asda and Sainsbury's have confirmed their plans to merge. Asda has historically been stronger in the north of England and Sainsbury's dominant in the south.

Mr Coupe said the merger would deliver at least £500million in cost savings, largely as a result of improved efficiency and better buying benefits.

"Although this news is not ideal for Tesco [whose share price dropped 4% on the news], we remain positive on the UK's current largest retailer due its recent takeover of Booker, and the wholesale opportunities this will bring".

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After spending nearly 20 years with U.K.'s Asda, an original purchase that was for $11.4 billion and included net debt, Walmart is bidding the chain across the pond a fond farewell for £7.3 billion, or $10.1 billion United States dollars.

Speaking of the merger, John Colley, Professor of Practice in Strategy and Leadership and Associate Dean at Warwick Business School, said: "The Sainsbury's and Asda merger represents Walmart's continuing reduction in activities outside the USA where their main business is under severe pressure from the internet".

"The vast majority of colleagues in both businesses are employed in stores".

At the moment there has been no suggestion that a financial merger will see shops on the ground amalgamate into one shared space.

"They've consistently exited underperforming markets or markets where they just haven't been able to really get their offering deeply embedded with the customer base", said Bartashus.

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"We believe the outcome of the CMA will be to keep all of the stores trading".

"We've been talking to each other for a while", Coupe said.

SAINBURY'S said there are no planned store closures as part of the deal, with both brands to operate side by side.

Mike Coupe, group chief executive of Sainsbury's, said: "This merger will offer suppliers great efficiency and, because of the scale of the business, offer opportunity to grow".

The CEO of Sainsbury's has apologised after he was caught on camera singing "we're in the money" following the Asda merger announcement.

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"The Competition and Markets Authority will ensure that there are sales of stores where there is overlap which should help Morrison's and also Aldi and Lidl".

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