Competition panel fears hit Sainsburys

Shares in supermarket chain Sainsbury’s (LON:SBRY) have plunged 15.56% to 243.10p (as of 12:15 GMT) after the CMA said the proposed ASDA merger would lead to a substantial lessening of competition in UK markets. The Competition and Market Authority’s published proposal indicates that prohibition of the merger is their current preferred remedy.

Sainsbury’s argued that the body’s analysis did not reflect the current UK conditions and was not consistent with comparable cases. The company said that they would continued to advance their position that the deal would put money into consumer’s pockets during the coming weeks.