Sainsbury’s and Morrisons held merger talks: what we know

What happened between Sainsbury’s and Morrisons?

Sainsbury’s and Morrisons reportedly held exploratory negotiations this year about combining their businesses in a multibillion-pound deal. The Guardian said the reports came from the Financial Times and Sky, and that the companies were no longer in live discussions at the time of its report on October 5, 2026. ¹

Exploratory talks are early discussions. They are not the same as a signed agreement, a completed merger or a public announcement that a deal will go ahead. The available reporting does not describe what the companies discussed in detail. ¹

Why are people talking about the possible merger?

A tie-up between two large supermarket chains would be a major change for UK grocery retail. Sainsbury’s is identified as the country’s second-largest supermarket chain. ² The Guardian reported that the combined business would have had a 23.6% market share, compared with Tesco’s 27.8%. ¹

Morrisons is owned by the US private equity firm Clayton Dubilier & Rice, which bought it in 2021. The Guardian reported that the purchase left Morrisons with more than £7bn in debt and that the chain had struggled to grow as quickly as rivals. ¹

What could it mean for shoppers?

For shoppers, the important question would be whether a merger changed competition: for example, the range of supermarkets competing in a local area, or the prices and service they offer. The reporting does not establish that any of those things would change, because it describes talks rather than an agreed deal. ¹

The history of a previous proposed deal shows why competition would be closely examined. In 2019, a proposed Sainsbury’s and Asda merger was blocked by the Competition and Markets Authority (CMA), the UK competition regulator. The Guardian reported that the CMA’s concern was that the deal would reduce competition and lead to higher prices for customers. ¹

Would regulators have to approve a merger?

A merger of this scale would be likely to draw close attention to its effects on competition. The Guardian reported that the CMA would almost certainly have reviewed a Sainsbury’s–Morrisons deal, while noting that the companies were no longer in live discussions. ¹

The 2019 Sainsbury’s–Asda decision is a relevant comparison, but it does not tell us what the CMA would decide about a different deal between different companies. No decision about a Sainsbury’s–Morrisons merger has been reported in the supplied source. ¹

Has a Sainsbury’s and Morrisons merger been agreed?

No agreement is described in the reporting available here. The talks were reported as exploratory, and the Guardian said they were no longer live. That means readers should not treat the reports as confirmation that Morrisons will be bought by Sainsbury’s or that the two chains will combine. ¹

The source does not say why talks ended, whether they might restart, or what conditions either company would require. Those details remain unknown. ¹