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Sainsbury’s-Asda merger blocked by regulator

The proposed merger between Sainsbury’s and Asda has been blocked by the UK’s competition watchdog over fears it would raise prices for consumers.

The Competition and Markets Authority (CMA) also said it would raise prices at the supermarkets’ petrol stations and lead to longer checkout queues.

Sainsbury’s boss Mike Coupe said the regulator was “effectively taking £1bn out of customers’ pockets”.

But he said the supermarkets had agreed to end the deal.

Asda boss Roger Burnley said he was disappointed: “We were right to explore the potential merger with Sainsbury’s, which would have delivered great benefits for customers and supported the long term, sustainable success of our business.”

 

Read more – www.bbc.co.uk

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Competition watchdog clears SSE-Npower merger

A merger between SSE and Npower’s retail operations has been cleared by the UK’s competition watchdog.

The Competition and Markets Authority (CMA) said it had given final clearance to the deal after concluding households would still have “plenty of choice” on standard variable tariffs (SVTs).

It found the two providers were “not close rivals” on the tariffs, which offer the most expensive deals.

The merger will create the UK’s second biggest energy supplier.

The CMA launched a full inquiry into the merger in May after its initial probe found the tie-up could reduce competition, potentially leading to higher prices for households.

It provisionally cleared the deal in August.

Anne Lambert, chairwoman of the inquiry group examining the deal, said: “With many energy companies out there, people switching away from expensive standard variable tariffs (SVT) will still have plenty of choice when they shop around after this merger.

“But we know that the energy market still isn’t working well for many people who don’t switch, so we looked carefully at how the merger would affect SVT prices.

“Following a thorough investigation and consultation, we are confident that SSE and Npower are not close rivals for these customers and so the deal will not change how they set SVT prices.”

 

Read More – www.bbc.co.uk