Proposed Merger of Sainsbury’s and Asda

Lord Tunnicliffe Excerpts

Tuesday 1st May 2018 Lords Chamber

[Lord Tunnicliffe (Lab)]

My Lords, I thank the Minister for repeating the response to the UQ. First, I pick up on the wording about this so-called merger. Would I be right in thinking that it would be easier for all concerned if we called this a takeover and not a merger, particularly as J Sainsbury is paying 42% of the stock and £2.5 billion to Walmart for the stores? Secondly, we agree that the takeover has to be conditional on clearance by the Competition and Markets Authority. In that regard, the takeover will affect the whole of the food value chain, from farm and factory to the supermarket shelf. It follows that the risk to the public interest from this concentration of ownership has the potential to squeeze competition in the market and poses a risk to workers, suppliers and consumers. Is the Minister confident that the CMA has the remit, resources, expertise and time to do a proper job, given that it has to consider not only the national situation and the local impact on villages and towns up and down the country but competition between domestic bricks-and-mortar businesses and global online corporations such as Amazon? Finally, the Minister’s colleague in another place said that he will be working closely with the Groceries Code Adjudicator. Can he confirm that the Government will also work closely with the Small Business Commissioner?