Sainsbury's and Asda in talks about £10bn grocery merger

[denphone]

Originally Posted by General Maximus

Not really, Asda is worth more. You would think that Sainsburys would be majority shareholder as they are buying it but it makes sense that the company that is worth more retains control. My only worry is that Walmart drag Sainsburys downhill because as far as they are concerned everything is about price and cost and i can see the Taste The Difference range disappearing.

l doubt it as a lot of Sainsbury's daily popular items are already the same price of the other supermarkets generally and as for the Taste The Difference range disappearing there is no chance of that disappearing as that is a extremely popular profitable range which only a fool would get rid of.

Originally Posted by Paul M

Why ?

Because it's another British company being swallowed up by a massive global conglomerate. Especially with the reputation Wall-Mart have in the states and now they'll be one of the biggest companies here.

[Mythica]

Originally Posted by General Maximus

Not really, Asda is worth more. You would think that Sainsburys would be majority shareholder as they are buying it but it makes sense that the company that is worth more retains control. My only worry is that Walmart drag Sainsburys downhill because as far as they are concerned everything is about price and cost and i can see the Taste The Difference range disappearing.

Do we actually know who the majority share holder is? Who has the other 58%? Why can you see the Taste The Difference range disappearing when Asda have Extra Special range?

[General Maximus]

because Taste the Difference is better quality and more expensive and with Walmart pulling the strings in Sainsburys one of the things they'll want to do is make the TDD range cheaper thinking it will increase sales it is will probably get rebranded to a different to make it look like something new and exciting and also an "improved recipe".

[Mythica]

Originally Posted by General Maximus

because Taste the Difference is better quality and more expensive and with Walmart pulling the strings in Sainsburys one of the things they'll want to do is make the TDD range cheaper thinking it will increase sales it is will probably get rebranded to a different to make it look like something new and exciting and also an "improved recipe".

You say that but I don't believe they are majority share holders so can they just pull the strings like that.

[denphone]

Originally Posted by General Maximus

because Taste the Difference is better quality and more expensive and with Walmart pulling the strings in Sainsburys one of the things they'll want to do is make the TDD range cheaper thinking it will increase sales it is will probably get rebranded to a different to make it look like something new and exciting and also an "improved recipe".

Where is your proof of this General? as thus so far l don't see any as all he has said "The merged company would cut prices by “circa 10%” on everyday items" And TTD are not everyday items as they are regarding as more in the premium range of items at Sainsbury's..

[pip08456]

Teacup - storm.

[richard s]

Originally Posted by Damien

Because it's another British company being swallowed up by a massive global conglomerate. Especially with the reputation Wall-Mart have in the states and now they'll be one of the biggest companies here.

I think you will find that Sainsbury's will be main share holder and ASDA the minor.

[1andrew1]

Originally Posted by richard s

I think you will find that Sainsbury's will be main share holder and ASDA the minor.

It doesn't really work like that.

- Asda Stores Ltd is 100% owned by Walmart Inc, that's the simple bit. You and I can't buy shares in Asda unless we approached Walmart with a deal which is what Sainsbury's has done.
- J. Sainsbury PLC is listed on the London Stock Exchange and you and I can buy shares in it. It does have some large shareholders though - Qatar Holdings owns 22% and Black Rock 5%.
If Asda and Sainsbury combine, the top three shareholders will be Walmart, Qatar Holdings and Black Rock.
As part of the proposed deal, Walmart would get a £3bn payment as well as a 44% stake in the new combined company.

---------- Post added at 20:43 ---------- Previous post was at 20:38 ----------

Originally Posted by denphone

Where is your proof of this General? as thus so far l don't see any as all he has said "The merged company would cut prices by “circa 10%” on everyday items" And TTD are not everyday items as they are regarding as more in the premium range of items at Sainsbury's..

No proof. Walmart won't care what price the new company charges for things in a far away country. Walmart will be more interested in how the new company's share price performs and its dividends. Its voting rights will be just 29%.