Sainsbury's-Asda merger blocked by regulator

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Sainsbury's-Asda merger blocked by regulator

Post by William Joseph1 » Thu Apr 25, 2019 8:54 am

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Re: Sainsbury's-Asda merger blocked by regulator

Post by blythburgh » Thu Apr 25, 2019 9:42 am

not surprised and I shop at neither anyway
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Re: Sainsbury's-Asda merger blocked by regulator

Post by rayf » Thu Apr 25, 2019 6:50 pm

Good! ;)

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Re: Sainsbury's-Asda merger blocked by regulator

Post by timco » Thu Apr 25, 2019 7:38 pm

Probably a long term disaster for both firms and the employees either way it went.

Now the most likely outcome is that both will be snapped up cheap by vulture funds who will sell off what the can and close down what they can't.

Walmart want out of the UK as they cannot make money at it anymore and the Sainsburys share price is very low currently given its NAV and there is value is selling the assets off.

The decision by the CMA is baffling as it shows a very big misunderstanding of where the UK market is going. Somewhere along the line we are going to lose one of the big 4 there is not enough top end market to sustain them. I still hold out hope for a Sainsburys/M&S merger. Although I did not agree with the ASDA merger as I did not think it solved the problems long term and had very serious potential implications for the staff particularly in the supply chain where I work (operations controller in a Sainsburys Depot) as they would not need all the behind the scenes support.

Still sorry to see it go as I have had a big drop in my share values :(
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Re: Sainsbury's-Asda merger blocked by regulator

Post by pakefield » Thu Apr 25, 2019 8:28 pm

I could not see a link between an Asda shopper and a Sainsbury one. But I can see a Sainsbury shopper also buying groceries at M and S so a far better combination.

Marks and Sainsburys would still be M & S of course

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Re: Sainsbury's-Asda merger blocked by regulator

Post by AAAlphaThunder » Fri Apr 26, 2019 7:35 am

Amazon have just posted ANOTHER record profit.

https://www.bbc.com/news/business-48058276

We need to change the old CMA guidelines and find a way to make our high street competitive before there is no high street left.

CMA are a classic example of an out-of-date model for regulation.
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Re: Sainsbury's-Asda merger blocked by regulator

Post by planteria » Fri Apr 26, 2019 9:16 am

some interesting thoughts. fwiw my gut feeling was that keeping the 4 main players was probably 'right', and i'd be surprised if there was an M&S-Sainsbury merger.

Sainsbury share price is the lowest for 10 years on the HL graph.. and on R4 they said the lowest it's been in 25years. that's amazing. they still own a lot of their stores, don't they?? i read a report a couple of years back re. Morrisons owning sites, whereas Tesco had sold them off and Asda rent all/majority. i can see Sainsbury as a value play.. and contrary to my comment above, the way i Could see M&S involved would be if they reckon they can take a significant number of JS stores as Large M&S Food stores, and perhaps M&S takeover Sainsbury?

way back we were discussing retail and i came to the conclusion that Amazon was the only retailer to own, and it's my biggest holding. it's not Just a retailer, of course, but one way/another surely it will take some more share of the UK's big 4 grocers over the coming years.

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Re: Sainsbury's-Asda merger blocked by regulator

Post by AAAlphaThunder » Fri Apr 26, 2019 11:39 am

planteria wrote:
Fri Apr 26, 2019 9:16 am
way back we were discussing retail and i came to the conclusion that Amazon was the only retailer to own, and it's my biggest holding. it's not Just a retailer, of course, but one way/another surely it will take some more share of the UK's big 4 grocers over the coming years.
I have every confidence that Amazon will "one way/another surely it will take some more share of the UK's big 4 grocers over the coming years".

Whether that is a good or bad development is open to debate.
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Re: Sainsbury's-Asda merger blocked by regulator

Post by pabenny » Fri Apr 26, 2019 1:53 pm

planteria wrote:
Fri Apr 26, 2019 9:16 am
.. Amazon was the only retailer to own, and it's my biggest holding. it's not Just a retailer, of course...
And will become less and less a retailer as their other services become ever more important - 40% of Q1 2019 revenue was services. Of course the share price is a result of their growth potential rather than their current profitability. The UK supermarkets enjoyed boom time in the 90s with expanding margins and growth in higher margin categories. Aldi and Lidl have called time on that and are both stealing share and eroding margins. Online grocery is said to be unprofitable.

I'm not convinced how much of a threat amazon is to the (UK) grocery market. Their attempts to date are way off- limited range, difficult to shop, unpredictable delivery slots and no chilled/frozen/fresh ambient. The UK grocery market is very competitive and there is not really enough margin to support home delivery
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Re: Sainsbury's-Asda merger blocked by regulator

Post by planteria » Fri Apr 26, 2019 2:39 pm

AAAlphaThunder wrote:
Fri Apr 26, 2019 11:39 am
I have every confidence that Amazon will "one way/another surely it will take some more share of the UK's big 4 grocers over the coming years". Whether that is a good or bad development is open to debate.
i agree. whether we look at what is good for our nation, our high street, our community etc. or whether we are looking to 'back the winner' as an investor. fwiw we never order food online, we go and choose it ourselves in a Co-op/Morrisons/Tesco store, and eat & drink at independent/small group businesses. but i've bought books/CDs/fishfood on Amazon, and Amazon is, i think rightly, a disproportionately large portion of our assets - an IFA wouldn't get his/her hat on if they looked at my 'portfolio' :mrgreen:

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