Chris Ratcliffe | Bloomberg | Getty Images
A Sainsbury signboard stands on Monday, April 30, 2018, in front of an Asda sign above the entrance of the supermarket in Watford, UK, on a gas station portal.
The UK competition regulator was blocked Sainsbury's proposed acquisition of Walda, owned by Walmart, for 7.3 billion pounds (9.4 billion US dollars) – a blow to the supermarket corporations that became the market leader Tesco wanted to overtake.
The Competition and Market Authority (CMA) said in its final report Thursday that the deal would result in price increases in stores, the Internet and at many gas stations across the UK.
Sainsbury & # 39; s, Walmart and Asda said they had met each other, agreed to end the transaction.
Sainsbury's and Asda agreed the deal last April. This would not only have overtaken market leader Tesco, but also led Walmart to leave the UK, one of the weakest companies in its global portfolio.
However, in its final report, the CMA found that British buyers and motorists would fare worse if Sainsbury's and Asda merged.
It was concluded that the agreement would lead to a significant reduction in competition both at national and local level.
It is said that this would mean that buyers would be affected across the UK, not only in the areas where the businesses of Sainsbury & Asda overlap.
"We have come to the conclusion that there is no effective way to express our concerns, except to block the merger," said Stuart McIntosh, chairman of the CMA investigation group.