The Competition and Markets Authority (CMA) has ruled today that the proposed merger cannot go ahead, as UK shoppers would be “worse off” due to reduced competition in the market, with expected price hikes and a drop in quality. But Sainsbury’s accuses the watchdog of taking £1billion out of shoppers’ pockets.

The deal had been in doubt since the CMA issued an earlier report suggesting it was faced with limited options, including ordering the two retailers - the UK’s second and third-largest grocery chains – to sell off a “significant” number of stores to a suitable party, and potentially ditch either the Sainsbury's or Asda brand. However, the CMA concluded today that there is no effective way of addressing its concerns, other than to block the merger.

CMA inquiry group chair Stuart McIntosh said: “It’s our responsibility to protect the millions of people who shop at Sainsbury’s and Asda every week. Following our in-depth investigation, we have found this deal would lead to...

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