'˜Sainsbury's deal will not affect Asda's Leeds HQ' - Asda boss

Bosses from both Sainsbury's and Asda have said that there are no plans to make cuts to jobs with either supermarket and that Asda House will remain located in Leeds.

Undated handout photo issued by Asda of Roger Burnley
Undated handout photo issued by Asda of Roger Burnley

Speaking this morning, both Roger Burnley, Asda chief executive and Mike Coupe, Sainsbury’s chief executive, said they expected the proposed merger to means more jobs for the combined business not less.

They added that no stores would be closed as part of the merger but did not rule out the sale of stores within the combiend portfolio.

Elsewhere Mr Coupe confirmed that talks on the merger began around a year ago with all parties hailing the strength of the fit of both supermarket brands.

It was also confirmed that the Competition and Markets Authority (CMA) will be asked to fastrack any investigation into the multi-billion tie-up, with a decision anticipated by the second half of 2019.

Mr Coupe said he was confident that regulators would approve the audatious deal, saying that the grocery market had more competition than ever before and that the deal was good for customers.

On a media all this morning, Mr Burnley, ruled out any combination of functions or logistics.

The business will remain listed on the London Stock Exchange as Sainsbury’s plc with US retail giant Walmart retaining a 42 per cent stake.

There is also the potential of Argos stores, currently part of the Sainsbury’s portfolio, being rolled out into Asda outlets.

Mr Coupe said: “The deal will give us the scale to invest in price and is excellent news for customers.”