British supermarket Sainsbury's and its takeover target, Asda, have committed to delivering £1 billion (€1.17 billion) of lower prices annually by the third year after the completion of their proposed £7.3 billion (€8.54 billion) deal, the two businesses reported on Tuesday.
The supermarket said that it "strongly disagreed" with the Competition and Markets Authority's (CMA) provisional report into the merger, which stunned the market by warning the deal could be blocked unless the pair sell significant numbers of stores - or even one of the brands. Its full submission to the CMA, which is yet to be made public, contains a more conservative store disposal figure, thought to be more in keeping with the 150 originally anticipated by analysts.
Sainsburys said it would match Asda's commitment to pay small suppliers within 14 days, covering all suppliers with turnover of less than £250,000.
In a joint statement, the Sainsbury's chief executive, Mike Coupe, and the Asda chief executive, Roger Burnley, said: "We are committing to reducing prices by £1bn per year by the third year, which would reduce prices by around 10% on everyday items".
The price commitments would be independently reviewed by a third party and the parties would publish the performance each year, holding them to public account.
The CMA said it will be "difficult for the companies to address the concerns it has identified".Читайте также: Indian tycoon Nirav Modi arrested in London
But he added: "By announcing clearer details of what post-merger plans would be - including a precise structure for price investment to reduce everyday prices 10% over the next three years, a suggested profit cap on fuel, and to dispose of a substantial number of petrol forecourts - Sainsbury's are hoping to convince the CMA to reconsider".
They will create cost savings in three ways: By securing lower purchasing prices from suppliers, predominantly by paying the lower of the two prices that Sainsbury's and Asda now pay large suppliers for identical products; by putting Argos stores into Asda; by jointly buying shared goods and services and reducing central costs.
Sainsbury's said it would move to pay small suppliers within 14 days; Asda will continue to pay its small suppliers within 14 days, in line with existing commitments.
"We have proposed a reasonable yet conservative remedy package and hope the CMA considers this so that we can deliver the cost savings for customers".
Sainsbury's shares were up almost 2% in midday trade at 239p.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
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