Sainsbury's share price plummets 14% as CMA threatens to block merger

Lloyds share rise on results

Sainsbury's share price collapsed in morning trading on Wednesday after the Competition and Markets Authority (CMA) warned the proposed merger with Asda would create "extensive" competition concerns.

In a release on Wednesday morning, the CMA said these competition concerns could be felt at both a national and local level throughout the whole of the UK. Furthermore, the proposed merger could result in "higher prices, reduced quality and choice, and a poorer overall shopping experience across the UK". It added these concerns would be difficult for the two companies to address; the final report is set to be issued by 30 April. On the news, Sainsbury's share price dropped 14% to 247.5p, while Morrison's was down 4.6% to 229p on concerns further mergers will be thwarted. Sainsbu...