Wefan Gymraeg

CMA must investigate proposed Sainsbury and Asda merger

The Welsh Liberal Democrats have urged the Competition and Markets Authority to investigate the proposed merger between Sainsbury and Asda to ensure neither suppliers or consumers lose out.

FSB Wales, FUW and NFU Cymru have all expressed concerns over the potential impact of the merger on suppliers of the supermarket giants. There are fears that the post-merger supermarket would be powerful enough to dictate negative terms to suppliers and that reduced competition in the industry could lead to price rises for consumers.

Welsh Liberal Democrat Spokesperson for Agriculture Cllr William Powell said:

Welsh farmers will be justifiably concerned this merger will produce a supermarket that is simply too powerful, leaving suppliers at its mercy.

Farmers already work with tight profit margins and face the multiple challenges of Brexit, including diminishing farm support and obstacles to accessing the vital EU Single Market. This merger must not be allowed to threaten them further.

Leader of the Welsh Liberal Democrats, Jane Dodds added:

Liberal Democrat Leader Sir Vince Cable was right to call for the proposed merger to be investigated by the Competition and Markets Authority. The merger should be blocked or stores sold off if the merger threatens competition.

As Liberal Democrats we oppose the creation of monopolies and the centralisation of power they entail. We must build an economy that puts power in the hands of consumers and allows small businesses to flourish.

Share this post on social media: