LONDON (dpa-AFX) - Sainsbury's held exploratory merger talks with rival Morrisons earlier this year over a potential multibillion-pound deal that could have reshaped the UK supermarket sector, according to media reports.
The discussions took place between November 2025 and February 2026 and are no longer active, the Financial Times reported, citing people familiar with the matter.
A combination of Sainsbury's and Morrisons would create a supermarket group with around 24% of the UK grocery market, according to market-share estimates cited by the reports, putting it behind market leader Tesco.
Sainsbury's is currently the UK's second-largest grocer, while Morrisons has fallen to sixth place after being overtaken by German discounter Lidl. Morrisons was acquired by private equity firm Clayton Dubilier & Rice for £7 billion in 2021.
Any potential merger would likely face scrutiny from the Competition and Markets Authority. In 2019, the regulator blocked Sainsbury's proposed £7.3 billion takeover of Asda over concerns that the deal would reduce competition and lead to higher prices.
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