Here's What Analysts Are Saying About Sainsbury’s Asda Deal
Sainsbury CFO Says Asda Deal `Very Focused' on Competing With Amazon
Sainsbury’s plan to buy Walmart Inc.’s Asda was welcomed by investors and frowned upon by short sellers, causing the shares to rise the most on record. Some analysts cautioned that a tie-up will almost certainly see a high level of scrutiny from the U.K.’s Competition and Markets Authority (CMA). This could result in harsh conditions for approval and a number of store divestments.
Sainsbury shares gained as much as 21 percent after announcing the 7.3 billion-pound ($10 billion) deal that would leave Walmart as the combined company’s biggest shareholder. U.K. rivals Tesco Plc and Wm Morrison Supermarkets Plc and some grocery suppliers fell. Shares of Dixons Carphone Plc, which competes with Sainsbury’s Argos brand in electrical and home goods, also declined.