Oct 5 (Reuters) – Sainsbury’s, Britain’s second-largest grocer, held talks with smaller rival Morrisons about a merger earlier this year, according to media reports on Monday.
• The companies were considering a potential multibillion-pound deal before Sainsbury’s walked away, an FT report said, citing people familiar with the matter
• The talks took place between November 2025 and February this year, the FT report said, adding that talks are no longer active
• People close to the situation did not rule out negotiations restarting in the future, the FT report said
• Spokespeople for both Sainsbury’s and US private equity firm-owned Morrisons declined to comment on the report
• While Sainsbury’s reported slower underlying sales growth in its most recent quarter, Morrisons, the UK’s sixth-largest grocer, reported growth in quarterly sales
• In 2019, Britain’s competition regulator blocked Sainsbury’s proposed £7.3 billion takeover of Asda
• Morrisons’ owner, private equity firm Clayton Dubilier & Rice, would remain open to a tie-up with one of its competitors, Sky News reported, citing retail insiders
• Clayton, Dubilier & Rice won an auction to buy Morrisons for £7 billion in 2021, beating a consortium led by SoftBank-owned Fortress Investment Group
• Shares of Sainsbury’s were little changed on Monday and marginally down so far this year
(Reporting by Simone Lobo in Bengaluru, additional reporting by James Davey in London; Editing by Shinjini Ganguli)
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