UK regulator blocks Sainsbury’s $9.4bn Asda takeover

Sainsbury’s, Walmart and Asda said they had mutually agreed to terminate the $9.4 billion merger transaction. (Reuters)
Updated 25 April 2019
0

UK regulator blocks Sainsbury’s $9.4bn Asda takeover

  • Sainsbury’s, Walmart and Asda said they had mutually agreed to terminate the transaction
  • Britain’s competition regulator found that UK shoppers and motorists would be worse off if Sainsbury’s and Asda merged

LONDON: Britain’s competition regulator has blocked Sainsbury’s proposed $9.4 billion (£7.3 billion) takeover of Walmart owned Asda — a huge blow to the supermarket groups who wanted to combine to overtake market leader Tesco.
The Competition and Markets Authority (CMA) said on Thursday that the deal would lead to increased prices in stores, online and at many petrol stations across the UK.
Sainsbury’s, Walmart and Asda said they had mutually agreed to terminate the transaction.
Sainsbury’s and Asda agreed the deal in April last year. As well as overtaking market leader Tesco, it also would have given Walmart a way to exit Britain, one of the weakest performers in its global portfolio.
However, in its final report the CMA found that UK shoppers and motorists would be worse off if Sainsbury’s and Asda merged.
It concluded that the deal would result in a substantial lessening of competition at both a national and local level.
It said this would mean shoppers right across the UK would be affected, not just in the areas where Sainsbury’s and Asda stores overlapped.
“We have concluded that there is no effective way of addressing our concerns, other than to block the merger,” said Stuart McIntosh, chair of the CMA inquiry group.


MODON to establish integrated pharmaceutical complex

Updated 23 May 2019
0

MODON to establish integrated pharmaceutical complex

JEDDAH: The Saudi Authority for Industrial Cities and Technology Zones (MODON) has signed an industrial land lease covering more than 62 thousand square meters in the city of Madinah, to build a pharmaceutical complex including research and development centers, with a total investment reaching SR 570 million.

MODON’s Director General Khalid bin Mohammed Al-Salem said that the signing of the contract was the result of joint work with the National Program for the Development of Industrial Compounds. MODON provided various facilities and incentives to support the investment, with the project set to provide nearly 1000 jobs for both genders with a localization rate exceeding 50 percent.

He added that the project is in line with the goals of the National Industrial and Logistics Development Program (NIDLP) to localize the most advanced industries in the world, in accordance with Saudi Vision 2030 for economic diversification.

Since its inception in 2001, MODON has been developing integrated industrial lands in accordance with the highest international standards. It currently oversees 35 industrial cities under development in various regions of the Kingdom, in addition to supervising private industrial parks and cities. The developed industrial lands exceeded until today 198.8 million square meters, while the existing industrial cities include 3,474 productive factories.