The proposed merger between Sainsbury's and Asda has been blocked by the UK's competition watchdog over fears it would raise prices for consumers. The Competition and Markets Authority (CMA) also said it would raise prices at the supermarkets' petrol stations and lead to longer checkout queues. The deal would have created the UK's biggest supermarket chain, accounting for £1 in every £3 spent on groceries. Sainsbury's and Asda had said the planned tie-up would have cut their costs, allowing them to lower prices for consumers across the UK. Sainsbury's has more than 1,400 shops in the UK, of which about 800 are convenience stores, while Asda has more than 600. Analysts also believed it was designed to help the two supermarkets counter the rise of discounters Aldi and Lidl in the increasingly competitive grocery market.
