Sainsbury and Asda Merger Debate
Full Debate: Read Full DebateDepartment: Department for Business, Energy and Industrial Strategy
Mark Menzies
Main Page: Mark Menzies (Independent - Fylde)Department Debates - View all Mark Menzies's debates with the Department for Business, Energy and Industrial Strategy
(6 years, 7 months ago)
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Andrew Griffiths
I can give the hon. Lady the assurance that I was given by both Sainsbury’s and Asda, which is that both head offices will continue to be maintained. Over recent months, we have seen the real pressure the retail sector is under with the loss of some very well loved and well known high street names as the result of a very challenging business environment.
I make no comment on the validity or the veracity of the merger details—that is for the CMA to decide—but clearly what we see is two businesses trying to get ahead of the curve and futureproof themselves in a very challenging market. The hon. Lady is a doughty champion for her constituents, so I am sure she will engage with both Sainsbury’s and Asda to seek further reassurances, but I can reassure her that that head office will remain open.
Mark Menzies (Fylde) (Con)
For 11 years before I entered this place, I worked in the head office of Asda, alongside my hon. Friend the Member for Shipley (Philip Davies), in the constituency of the right hon. Member for Leeds Central (Hilary Benn). I can therefore understand the concerns of those who work there today. The Minister cannot provide assurances about the future of the head office—indeed, I do not believe that it will be there in a few years’ time.
I urge the Minister please not to view this as a merger. It is not a merger: it is a takeover by Sainsbury’s, in return for 42% of stock and £2.5 billion to Walmart. That is what it is, so let us stop using false terminology to describe what is actually happening. I urge the Minister to focus on the jobs in distribution centres, many of which are in working areas of the country. If this measure goes ahead, the distribution centres will be absolutely hammered a year or two down the line.
Andrew Griffiths
I understand very clearly the points my hon. Friend makes. He may not believe it to be a merger, but this is a merger within the legal definition that will be considered by the CMA. Clearly, there will be changes to the way the business is run to make it efficient and to keep it running well into the future. The assurances that Sainsbury’s and Asda have given us are that they will continue to run them as two separate businesses. I hope I can reassure my hon. Friend that, from the information we have been given, those head offices will continue.