Merger talks between British supermarket chains Sainsbury's and Asda are at an "advanced" stage, Sainsbury's has confirmed. The two brands are expected to be retained should a merger go ahead. Sainsbury's and Asda - the UK arm of Walmart - are the second and third largest supermarkets in the UK. The combined group would comprise 2,800 stores and would represent 31.4% of the UK grocery market - slightly more than that of market leader Tesco. The two brands will be retained as they appeal to a different customer but they see a good geographical fit, with Asda stronger in the north and Sainsbury's in the south. The two parties realise that the Competition and Markets Authority (CMA) will have some serious questions to ask.
