Mark Jones comments on The Guardian on the Asda-Sainsbury’s merger decision
Thursday 25th April 2019
Mark Jones, partner at Gordons and an expert in the food and drink supply chain, has been quoted in the national press including The Guardian with his reaction to the Competition and Markets Authority’s (CMA’s) decision to block the merger between Asda and Sainsbury’s.
On Thursday the CMA said it would not allow the merger to go ahead over fears it would raise prices for consumers, increase petrol prices and lead to longer checkout queues.
Reacting to the news, Mark said:
“Suppliers will be breathing a sigh of relief with the news the Asda/Sainsbury’s merger is not going through. The CMA said the risk was that customers would face higher prices. Maybe that is true but in the short term, suppliers would have been told that they have to supply the combined business at the lower of the two prices they charge Asda or Sainsbury’s, or possibly provide a new even lower price. That would have been the immediate effect of the merger and, thankfully for suppliers, the CMA has done them a favour.”
Andy Brian, partner and head of retail at Gordons, was also quoted in the press reacting to the CMA’s decision. View his comments here.