U.K. grocery chain Sainsbury’s has confirmed it is in advanced discussions about a merger with Walmart Inc.’s British unit, Asda.
The combination would create Britain’s largest supermarket chain, moving the merged company ahead of market leader Tesco. J Sainsbury plc, the chain’s corporate name, released no other information on Saturday and said it would make an announcement before the London stock market opens on Monday.
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The move underscores the intense competition in Britain’s grocery market as discounters like Asda take market share from traditional chains such as Sainsbury’s and Tesco.
Kantar Worldpanel, a retail research firm, puts Tesco’s market share at 27.6 percent, followed by Sainsbury’s at 15.8 percent and Asda at 15.6 percent.
The merger was first reported Saturday by Sky News.
