// Sainsbury’s CEO Mike Coupe may face axe following merger disapproval
// Analysts predict like-for-like sales to be down 0.3% during full-year results this Wednesday
Sainsbury’s chief executive Mike Coupe is fighting for his job after the CMA disapproved of the supermarket’s proposed £12 billion merger with Asda.
Coupe was the brain behind the proposed acquisition of Asda, which would have put Sainsbury’s ahead of longtime Big 4 leader Tesco, and successful discounters Aldi and Lidl.
However, the plan was investigated and rejected by the CMA – which saw Sainsbury’s share price drop at its lowest since the 2016 Brexit vote.
The CMA said the deal would harm competition by increasing prices in stores and online.
Meanwhile, analysts expect like-for-like sales to be down 0.3 per cent when Sainsbury’s posts its full-year results on Wednesday.
Coupe accused the watchdog of ignoring the supermarkets’ promises to hand shoppers price cuts of over £1 billion.
The debacle is said to have prompted questions about Coupe’s future as chief executive.
Since he took the reins in July 2014, Sainsbury’s shares have dipped 14.7 per cent – compared to the FTSE 100’s rise of 12.6 per cent.