Sunday 22 September 2019

Asda and Sainsbury's treated unfairly says UK court

Sainsbury’s agreed a £7.3bn (€8.1bn) takeover of Walmart-owned Asda in April and the deal is being probed by the Competition and Markets Authority (CMA). Photo: Jon Super/PA
Sainsbury’s agreed a £7.3bn (€8.1bn) takeover of Walmart-owned Asda in April and the deal is being probed by the Competition and Markets Authority (CMA). Photo: Jon Super/PA

James Davey

A British court ruled on Friday that the country's competition regulator treated Sainsbury's and takeover target Asda unfairly in not allowing the supermarket groups more time to respond to evidence submitted as part of a probe of their deal.

Sainsbury's agreed a £7.3bn (€8.1bn) takeover of Walmart-owned Asda in April and the deal is being probed by the Competition and Markets Authority (CMA).

On Wednesday the two companies said they would apply to the Competition Appeal Tribunal (CAT) for a judicial review of the CMA's phase two investigation of the deal, which started in September. Sainsbury's and Asda had asked the CMA for an extra 11 working days over the Christmas period to respond to a large amount of evidence material recently provided to them, but the CMA had declined the request. Sainsbury's and Asda said the CAT ruled on Friday that the timetables for responding to the materials and attending a hearing were unfair.

Reuters

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