Despite concerns from many that the Mega Merger will create competition issues, Sainsbury’s boss Mike Coupe believes the merger with rival Asda will be going ahead. The merger will create the UK’s biggest supermarket chain.
On the BBC Today programme he had this to say: “The competition authorities are examining the deal. They’re going into a lot of detail and looking at all aspects of it but we are confident in our case.”We believe that by bringing the two organisations together there is a unique opportunity to lower costs and ultimately those costs will be passed back to customers in the form of lower prices.”
Mike Coupe has said that they will “take it from there” once the CMA publish its findings in January.
This comes on positive news for Sainsbury’s Britain’s No. 2 supermarket group, who beat all the forecasts with a 20 percent increase in first-half profit today. According to Sainsbury’s this is due to cost savings from its Argos general merchandise chain ahead of schedule.
The merger with Asda is expected to cost £7.3 Billion, therefore the cost savings for Sainsbury’s of £500 million look to be well needed if the Merger does go ahead.