Sainsbury’s is facing a tougher battle than it had expected to get regulatory approval for its proposed takeover of Asda without onerous conditions, analysts and advisers have said, with an extension to a competition investigation now regarded as likely.
A deal to combine the UK’s second- and third-biggest supermarkets was announced last April, and speculation about the regulatory probe into the deal mounted after the two parties used a judicial review before Christmas to secure more time to respond to inquiries from the Competition and Markets Authority.
One shareholder in Sainsbury’s said the risks had clearly increased. “It looks like there will be greater remedies. The question is what management has to offer.” He added that “there does not really seem to be a plan B”.
