// CMA blocks Sainsbury’s & Asda from joining forces for 10 years
// Sainsbury’s has been prohibited from acquiring a stake in Asda or any of its subsidiaries
// Asda & Walmart are barred from acquiring a stake in Sainsbury’s or any company holding an interest in any Big 4 rival
The CMA has blocked Sainsbury’s and Asda from teaming up for the next decade.
The competition watchdog said Sainsbury’s is prohibited from acquiring a stake in Asda or any of its subsidiaries or from buying an interest in any business that has a holding interest in Asda for the next 10 years.
The rules will be bound until July 9, 2029, unless the parties receive the “prior written consent of the CMA”.
Meanwhile, Asda and US parent company Walmart have been barred from acquiring a stake in Sainsbury’s or any company holding an interest in any Big 4 rival.
The decision comes just two months after the CMA blocked Sainsbury’s and Asda’s £12 billion merger proposal.
The watchdog said the proposed merger was “more likely to lead to price rises than price cuts”.
Sainsbury’s and Asda promised to invest £1 billion into price reductions within the first three years of the merger if it was approved.
Up to 150 supermarkets were also offered to go up for sale by the two grocers, though the CMA ultimately blocked the deal.
Sainsbury’s chief executive Mike Coupe said the CMA was “taking £1 billion out of customers’ pockets”.