MPs are planning their own inquiry into the Sainsbury’s Asda merger

MPs are planning their own inquiry into the tie-up of Sainsbury's and Asda, separate to the competition watchdog's probe.

The Environment, Farming and Rural Affairs (EFRA) committee is gearing up to investigate the deal due to concerns for the impact it could have on suppliers to the supermarkets, The Mail on Sunday reported.

This comes just days after the Competition and Markets Authority (CMA) started its own scrutiny of the Sainsbury's-Asda merger.

City A.M. revealed earlier this month that Business Energy and Industrial Strategy (BEIS) committee chair Rachel Reeves and EFRA committee chair Neil Parish had joined forces to ask the CMA to take evidence from suppliers in its investigation.

It is thought that Reeves's committee could also join a full select committee inquiry.

In their joint letter to the CMA, Reeves and Parish said:

"Our committees have concerns over the impact that this merger would have on the grocery supply chain, particularly as the new business and its next largest competitor, Tesco Plc, would dominate the groceries retail market.

"In addition, we have concerns about the impact of the merger on the competitiveness of suppliers and on consumer choice in particular locations."

Read more: Asda reports steady sales growth ahead of Sainsbury's merger

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CityAM

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