// Sainsbury’s investor says the grocer is “wasting time & money” on proposed merger with Asda
// The investor said they expected that CMA had effectively blocked the £12bn merger
// CMA had identified 629 locations where competition could be impacted due to the merger
One of Sainsbury’s prime shareholders has faulted the Big 4 grocer for “blowing money and credibility” on its proposed merger with Asda.
The investor said they expected the CMA to effectively block the £12 billion merger, the Daily Mail reported.
In its provisional findings this week, the competition watchdog had identified 629 locations where competition could be impacted because of the merger, and said it would be “difficult for the companies to address the concerns it had identified”.
Sainsbury’s has said it would rescue the deal, but its investor believes it would be “a waste of time and money”.
The grocer had spent £17 million in costs related to the deal by September 22, according to its latest financial figures.
“We were sceptical of management’s confidence on the deal going through when it was announced. The CMA announcement is not a surprise frankly,” the shareholder told the Daily Mail.
“The competitive landscape has got, if anything, more competitive and Sainsbury’s has now blown money and credibility on this merger.”
The investor has since requested for Sainsbury’s to cut its losses by walking away from the deal.
The final verdict on the proposed merger by the CMA is expected for release on April 30.