The Analysis of Asda-Sainsbury’s Merger/Acquisition

Zhang Fengyi(Xiangtan University)

Abstract

The merger of Sainsbury’s and Asda caused huge impacts on Britain retail industry. Since the announcement that J Sainsbury plc would acquire Asda for £ 7.5 billion was published in April, 2018, the changes in the UK grocery market have been discussed and questioned. And the grocery market in UK will be reordered without doubt. This essay firstly introduces Sainsbury by using Pestle model, then aims to figure out the type and the benefits of this M&A, analyze the market response and how investors react to this event in the first two parts. In the third and the last part, we aim to explain why the CMA blocked the merge.

Keywords

Merger; Acquisition; British retail industry; Pestle model; Event study methodology

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DOI: http://dx.doi.org/10.26549/jfr.v5i1.5741