IT WAS BILLED as the retail deal of the decade, at a stroke creating Britain’s biggest supermarket chain—and one of Europe’s largest, too. No longer. On April 25th Britain’s Competition and Markets Authority blocked the proposed £12bn merger between the country’s second-largest supermarket, Asda, which is owned by America’s Walmart, and the third largest, Sainsbury’s. By combining the pair’s market shares of 15.4% and 15.
Asda and Sainsbury’s argued that in Britain’s ruthlessly competitive retail market, the deal would have given them room to cut costs and thus offer lower prices to customers. Mike Coupe, the boss of Sainsbury’s, had claimed that prices would fall by as much as 10%. It would also have enabled the new firm to compete more effectively with Aldi and Lidl, two German discount stores that have been gobbling up market share over the past decade.
The two supermarkets bemoaned the CMA’s decision. Many others, however, are relieved. Trade unions are happy that job cuts have been avoided. Farmers and other suppliers had expressed concern at the merger; they would probably have borne the brunt of the cost cuts. The collapse of the deal leaves Sainsbury’s, in particular, in a pickle. Its share price, already significantly down over the past few years, dipped sharply on the news. Many analysts and investors had argued that Sainsbury’s management was investing too much faith and time in a merger that always looked vulnerable to the CMA’s intervention, while ignoring the company’s underlying weaknesses.
The CMA’s decision may also have wider implications for British business and the economy. In the past decade Britain has witnessed about $2trn-worth of mergers and acquisitions of domestic firms. Relative to the size of the economy, that is over a fifth more than in America over the same period. American economists and politicians are increasingly concerned that their economy has become too concentrated, limiting competition and eroding consumer welfare.
Hemos resumido esta noticia para que puedas leerla rápidamente. Si estás interesado en la noticia, puedes leer el texto completo aquí. Leer más:
España Últimas Noticias, España Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
UK regulator blocks Sainsbury's merger with Walmart-owned AsdaBritain's competition regulator has blocked Sainsbury's proposed 7.3 billion pound ($9.4 billion) takeover of Walmart owned Asda — a huge blow to the supermarket groups who wanted to combine to overtake market leader Tesco.
Fuente: CNBC - 🏆 12. / 72 Leer más »
Japan Authorities Indict Carlos Ghosn For Fourth Time, Nissan Poised To Reject Full Renault MergerNissan management has acted as if it is not being treated as an equal partner and that a complete merger would solidify what it perceives as Renault’s dominant position. That dispute is at the heart of the legal fight between Nissan and its former CEO and chairman. This guy must av really pissed off some really powerful Japanese govt people with the way they are going after him. Or they just think no one man should av all that power
Fuente: Forbes - 🏆 394. / 53 Leer más »
German bank merger crumbles as Deutsche Bank tie-up talks with Commerzbank endDeutsche Bank and Commerzbank abandoned their merger talks on Thursday, with the... Which airline is that?
Fuente: Reuters - 🏆 2. / 97 Leer más »
Anadarko Boosted CEO’s Payout Just Before $33 Billion Chevron MergerAnadarko Petroleum, a day before announcing its sale for $33 billion, sweetened the payout its top executives can reap in the event of a deal by millions of dollars, according to a compensation firm’s analysis. Seems legal... 😬🤔 Trumponomics at work. Nice work if you can find it. Joke.
Fuente: WSJ - 🏆 98. / 63 Leer más »
CBS suspends CEO search, fuelling Viacom merger expectationsCBS Corp on Tuesday said it had suspended its search for a new chief executive a... xD CBS seems so little compared to other media companies like Disney, WarnerMedia etc. This is a must! They shouldn't let idiocy reigns
Fuente: Reuters - 🏆 2. / 97 Leer más »
UBS, Deutsche Bank in asset management merger talks: FTThe asset management arms of Deutsche Bank AG and Swiss bank UBS Group AG are in... So with a potential bidding war for DWS - what will Deutsche Bank do with the cash ? Buy back 40% of their own shares ?
Fuente: Reuters - 🏆 2. / 97 Leer más »
Deutsche Bank and Commerzbank merger talks are expected to fail: sourceMerger talks between Deutsche Bank and Commerzbank are expected to end in failur... Only to fail because the media says so! hahahahahahahahahahahahahahahahahaha FVCK'EM hahahahaha OBVS.
Fuente: Reuters - 🏆 2. / 97 Leer más »
Deutsche Bank and Commerzbank merger talks collapseMerger talks between Germany's top two lenders, Deutsche Bank and Commerzbank, have ended in failure.
Fuente: CNBC - 🏆 12. / 72 Leer más »
Deutsche Bank and Commerzbank call off merger talksDiscussions between Germany’s two biggest listed banks end in failure Deutsche Bank is a toxic liability heading for bankruptcy without a “white knight!” But nobody is interested or crazy enough to assume unlimited legal liability of its past endeavours!
Fuente: TheEconomist - 🏆 6. / 92 Leer más »