Two British supermarket chains are attacking the market leader Tesco with multibillion-dollar merger.

Sainsbury and ASDA are attacking the market leader Tesco with multibillion-dollar merger.

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The two British supermarket chains Sainsbury and ASDA are attacking the market leader Tesco with its multibillion-dollar merger. Wal-Mart’s ASDA mother will be involved with 42 percent of the new company and get $ 3.38 billion Euros, Sainsbury announced on Monday. Overall was the volume of the deal to around 15 billion Euros.

The investment strategist Michael Hewson from the brokerage firm of CMC markets said that the reason for the merger was the growing competition by the discounters Aldi and Lidl, as well as through the online retailer Amazon.

HSBC analyst David McCarthy described the planned merger as economically useful. However, the British competition authorities could report concerns.

Sainsbury had savings converted at least 567 million Euros promised during a merger. This could reduce the prices of many products by 10 percent.

In response, shares in Sainsbury opened in London by good 21 per cent rose on the merger plans on a four-year high of 327,1 pence. That’s the biggest price jump for 18 years. The rivals Tesco and Morrison’s lost more than three percent.

According to market research firm Kantar Worldpanel, Tesco has currently a 27.6 percent, Sainsbury market share it’s up 15.8 per cent and ASDA to 15.6 percent. The German discounters Lidl and Aldi are therefore jointly on 12.6 percent.

The pressure of competition for the British supermarket chain has significantly increased with the spread of Aldi and Lidl. The US-based Group Amazon in trade in foodstuffs is also pressing.

Sainsbury had announced it in October, 2.000 points to delete. The company employs more than 150,000 people in the UK. Tesco had already announced the Elimination of 1,100 jobs in June.

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