March 18 (Reuters) - Sainsbury’s and Walmart’s Asda will provide a more specific commitment to cut prices in response to a negative provisional regulatory view by the competition watchdog of their proposed tie-up, the Financial Times (FT) reported on Monday.
Britain’s Competition and Markets Authority (CMA) dealt a potentially fatal blow to the deal last month saying its initial view was that the proposed 7.3 billion pound ($9.66 billion) takeover of Asda by Britain’s No. 2 supermarket group would be blocked without the sale of a large number of stores, or even one of the brands.
The supermarkets will also recalculate a key indicator of consumer harm using what they consider to be more realistic criteria, and submit another proposal for store sales, the FT reported here, citing people briefed on the process.
Sainsbury’s and Asda did not immediately respond to requests for comment on the FT report. ($1 = 0.7559 pounds) (Reporting by Noor Zainab Hussain in Bengaluru Editing by Alexander Smith)