Rachel Reeves MP, Chair of the Business, Energy and Industrial Strategy Committee, has welcomed the announcement that the Competition and Markets Authority (CMA) is investigating the planned merger between Sainsbury’s and Asda.
Rachel Reeves MP said:
"The CMA is right to investigate this potential merger between two powerful supermarket players. It’s vital that the CMA examines closely the impact on consumer choice and jobs. It's also important that the effects on the supply chain are looked at as small suppliers to supermarkets are already under pressure on prices. The Groceries Code Adjudicator has an important role to play in monitoring the treatment of suppliers during this period of uncertainty in the market."
The BEIS Committee previously wrote a joint letter with the EFRA Committee to the CMA raising concerns over the impact that the merger would have on the grocery supply chain and asking for details on the approach of any investigation.