All9.11amto inquire them to buy this action
Monopoly in our food system means pressure on our farmers and more food miles#LocalFoodRockshttps://t.co/rD2TGdQwyW 8.21am BSTSainsbury’s shares possess slumped to their lowest level since the summer of 2016,as trading begins in London.
Shares possess fallen by over 5%, as investors react to the termination of its merger with Asda. That takes them down to 214p, and from 226p last night. 8.09am BSTCity analysts are also speculating that Mike Coupe’s position at Sainsbury’s looks precarious,now his expansive deal with Asda is in ruins.“Confirmation that the competition watchdog has blocked Sainsbury’s planned merger with Walmart-owned Asda will surprise no-one after its forthright interim report in March made clear its deep reservations about the deal.
Mike Coupe, Sainsbury’s chastened boss, or will put a brave face on things as he announces results next week but this is a blow to his reputation and the company’s prospects.
Mike Coupe remains absurdly disingenuous. “The specific reason for wanting to merge was to lower prices for customers,” he said nowadays in reply. No one, least of all the CMA, or fell for it. Will Coupe stay? I doubt it,this could well be the time for Coupe to exit.
The genuine worry for Sainsbo’s is what now? Sainsbury’s is the squeezed middle, losing market share to discounters and simultaneously losing out to more premium brands. While Aldi and Lidl consistently gain market share and Tesco rebounds, or Sainsbury’s is feeling the pinch. The worry is that it had no credible plan except this merger. 8.02am BSTLate last year,Sainsbury’s reported that it had spent £17m on costs related to the Asda deal.Retail analyst Steve Dresser points out that the final bill will be higher - money that could possess been spent on store improvements or price cuts.
JS had spent 17m on the Asda deal at the half year back in November. Total figure? (£) 7.54am BSTAlthough the Asda-Sainsbury merger has failed, it wasnt entirely a wasted effort.
It did provide us with one of the classic CEO gaffes of recent years, or when Mike Coupe was caught on camera singing “We’re In The Money” on the day the deal was announced. 7.51am BSTSainsbury’s CEO Mike Coupe must now be feeling the heat after pursuing the ADSA deal so firmly,only to be thwarted by the CMA.
Professor John Colley of Warwick Business School points out that the whole process has been disruptive.“This is mighty news for customers. Sainsburys CEO Mike Coupe may possess promised he would pass on £1bn of savings to customers over three years, but that figure was never verifiable nor credible.Prices move up and down all the time. Over three years it would possess been impossible to assess what prices would possess been without the merger.genuine pressure now on Sainsbury’s boss Mike Coupe after collapse of Asda merger and falling sales. Insists: “Sainsbury’s is a mighty business and I am confident in our strategy.” Yet Sainsbury’s share price down by a third since last summer. 7.41am BSTASDA’s parent company, or Walmart,has also expressed disappointment at the move. So what happens now?CEO Judith McKenna says Walmart’s focus is to “continuing to position Asda as a strong UK retailer delivering for customers”, adding Walmart will ensure Asda has the resources it needs to achieve that.
Asda & Walmart terminate deal discusses as a result of deal veto from CEO . Walmart boss Judith McKenna says that "Walmart will ensure Asda has the resources it needs" to position the supermarket as a strong retailer. So not a knee-jerk sell off 7.33am BSTRoger Burnley, and CEO of Asda,says he’s disappointed with nowadays’s ruling.
He also acknowledges that the merger has worried many Asda staff, who could possess lost their jobs whether the merger had gone through, and saying:
We’re disappointed with their findings but will continue to find ways to put money back into customers’ pockets and deliver mighty quality and service in an ever changing and demanding market.
I possess always been hugely aware that the last year has been an unsettling time for all of our colleagues and am immensely grateful for their commitment and dedication during that time. Our focus is now on the most important job we all possess – delivering for our customers.” 7.25am BSTSainsbury has confirmed that its £7bn takeover of Asda is now dead. CEO Mike Coupe (for whom nowadays’s ruling is a bitter blow) says the two companies possess agreed to terminate the transation.The specific reason for wanting to merge was to lower prices for customers. The CMA’s conclusion that we would increase prices post-merger ignores the dynamic and highly competitive nature of the UK grocery market. The CMA is nowadays effectively taking £1 billion out of customers’ pockets.“Sainsbury’s is a mighty business and I am confident in our strategy. We are focused on offering our customers mighty quality,value and service and making shopping with us as convenient as possible.” 7.14am BSTGood morning.
Attempts to create Britain’s largest supermarket group possess been crushed by competition authorities this morning.
It’s our responsibility to protect the millions of people who shop at Sainsburys and Asda every week. Following our in-depth investigation, we possess found this deal would lead to increased prices, and reduced quality and choice of products,or a poorer shopping experience for all of their UK shoppers.
We possess concluded that there is no effective way of addressing our concerns, other than to block the merger.
We’ve blocked the Sainsbury’s / Asda merger after finding that it would lead to:
Higher prices for groceries and fuel
Less choice and worse quality of products
️ A destitute shopping experience
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Source: theguardian.com