Lily Foster

News · UK

Asda and Sainsbury's may soon merge into one big 'super-supermarket'

This would be absolutely huge.

Sainsbury’s and Asda are deep in unexpected talks which may see the two supermarkets joining together to make them significantly more powerful.

Britain's second and third largest food retailers would form a tag-team to take on their largest rival Tesco - who are currently the leader of the UK market.

It's yet to be reported how exactly the deal would work, but it is believed that one possibility would see American parent company Wal-Mart turn Asda stores into Sainsbury's and take a big slice of the combined group.

To take effect the Competition and Markets Authority would have to approve the deal worth around £10 billion.

But some people are speculating that it will lead to the closure of hundreds of stores.

Sainsbury’s gave no details of the deal’s structure but a source with knowledge of the situation told - the holding company of the combined group would retain the Sainsbury’s name. Sainsbury’s Chief Executive Mike Coupe, who used to work for Asda, would lead it.

Product quality will also likely suffer as Asda use inferior ingredients in their own-label meals compared to Sainsbury's.