Sainsbury and Asda Merger Debate
Full Debate: Read Full DebateDepartment: Department for Business, Energy and Industrial Strategy
Tracy Brabin
Main Page: Tracy Brabin (Labour (Co-op) - Batley and Spen)Department Debates - View all Tracy Brabin's debates with the Department for Business, Energy and Industrial Strategy
(6 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
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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.
Tracy Brabin (Batley and Spen) (Lab/Co-op)
Asda is a substantial employer in my constituency. With £500 million of efficiency savings coming down the track, will the Minister tell us what discussions he had, in the meeting with the chief executive officers, about how to protect jobs and the number of hours worked by employees? Each job loss has a massive impact on my community, which is already suffering under Tory austerity.
Andrew Griffiths
Asda and Sainsbury’s believe that the way to protect those jobs is by making the business efficient, effective and able to compete and improve its market share. The shareholders will be asked to vote to approve the merger deal, so they, too, believe that—otherwise they would not vote for it.
I think the hon. Lady needs to be careful not to cause undue concern. The public assurances provided by both Sainsbury’s and Asda so far are that there will be no job losses in stores and that there will be no store closures. Clearly, the aspiration behind the public utterances from Sainsbury’s and Asda is that they want their businesses to improve. The recent takeover by Sainsbury’s of Argos saw efficiencies and improvements in that business that lead to more people being employed. I am responsible for any merger and competition issues, which will be considered by the CMA. I urge her to engage with, and make her points to, the businesses themselves.