According to experts, the merger deal between the largest food chain Asda and Sainsbury's, the leading UK retailer, will create a new behemoth in the supermarket sector.
Regulators’ approval is only needed to complete the deal.
On April 30, Sainsbury's announced a blockbuster merger with its rival supermarket chain Asda, which is currently owned by US-based Walmart.
If approved by regulators, it would become a new grocery superpower in the United Kingdom. It is expected to surpass Tesco which is Britain’s largest retailer with 25% of market share, while that of Sainsbury's is below 13.8%.
Analysts estimate that WalMart will receive £2.975 billion ($ 4.1 billion) for the deal and a 42% stake in the new company. The market capitalization of Sainsbury's is about £6 billion ($8.3 billion).
Sainsbury’s and Asda say their merger will lead to in-store prices coming down by about 10% “on many of the products customers buy regularly”.
