Market

The Expert View: Lloyds, Sainsbury’s and Intu


Key stats
Dividend yield 3.1%
Market capitalisation £5,330m
No. of shares out 2,203m
No. of shares floating 2,196m
No. of employees 52,800
Trading volume (10 day avg.) 5.4m
Turnover £28,456m
Profit before tax £1,429m
Earnings per share 12.72p
Cashflow per share 42.80p
Cash per share 88.10p

Sainsbury’s and Asda merger on the rocks

The Sainsbury’s (SBRY) merger with Asda has been put into jeopardy by the Competition and Markets Authority (CMA) and the supermarkets can no longer be sure of a favourable ruling, says Hargreaves Lansdown.

The CMA has raised competition concerns about the deal but left the door open for the supermarkets to sell off assets to complete it, although analyst Laith Khalaf said ‘it’s clearly not keen on that solution’.

‘The supermarkets will now have to bend over backwards if they want to proceed with the merger, and even then, wouldn’t be guaranteed a favourable ruling from the CMA,’ he said.

Khalaf said they would have the extra pressure of finding buyers for the assets sold and if they do sell enough to push the merger through ‘the combined entity may damage competition by being too weak, rather than too strong’.

Sainsbury’s shares slumped 18.6% to 234.5p yesterday.



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