In the News
Sainsbury's and Asda merger comes under scrutiny
24th August 2018
Competition policy (PESTLE) & Porter Five Forces in action: yet another review of competitive rivalry in the UK supermarket industry as the planned merger between Sainsbury's and Asda is sent for investigation by the Competition and Markets Authority.
Sainsbury’s is planning to merge with Asda. We’ve launched our formal investigation today. Find out more:https://t.co/MFhWHZURBS pic.twitter.com/E9yFT5pry6
— Competition & Markets Authority (@CMAgovUK) August 23, 2018
Competition policy (PESTLE) & Porter Five Forces in action: yet another review of competitive rivalry in the UK supermarket industry. https://t.co/4SZtTa2WNv
— tutor2u Business (@tutor2uBusiness) August 24, 2018
Specifically, the CMA is concerned about whether the merger will (in their words) "lead to less choice, and therefore higher prices or worse quality services, across the range of products sold by both businesses."
They are also worried by the possible increase in the monopsony (buying) power of an enlarged supermarket chain. Suppliers might see their own profit margins and commercial viability come under renewed pressure.
WATCH: Team leader, Emma Budge, explains how our investigation of Sainsbury’s and Asda’s planned merger will be carried out: pic.twitter.com/dswdM6jVma
— Competition & Markets Authority (@CMAgovUK) August 23, 2018
Competition watchdog launches formal investigation into Sainsbury's Asda merger https://t.co/6APcp1SvaH pic.twitter.com/rcyQS4OjBk
— The Independent (@Independent) August 24, 2018
The CMA has called-in the Sainsbury/Asda deal. @DeirdreHipwell has looked at what it means for:
— Richard Fletcher (@fletcherr) August 23, 2018
Rivals -https://t.co/saH02WPErt
Shareholders - https://t.co/ym7Fy1ekcX
Staff - https://t.co/QI6YkMT8Fg
Suppliers - https://t.co/E9vBUaldYt
via @TimesBusiness
- Business
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- Merger integration
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- Price competition
- Porter's 5 Forces Model
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
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