Sainsbury’s and Morrisons explored a merger, but are not in talks

Sainsbury’s and Morrisons held preliminary talks about a possible merger between November 2025 and February 2026, according to reports published by several British media outlets. Sainsbury’s withdrew from the talks and, for now, there are no active negotiations. Both companies declined to comment.

The deal would have combined the market shares of the two chains, which totalled 23.6%, according to data from Worldpanel by Numerator cited in the reports. Tesco would have retained first place, with 27.8%.

Competition review would be a key step

Any future deal would be subject to review by the Competition and Markets Authority (CMA), the UK competition authority. Combining the two chains could raise concerns about reduced competition in grocery retail. Possible measures mentioned in the reports include selling some stores, but any decision would depend on the CMA’s assessment: there has been no ruling on this deal, which has not come to fruition.

The closest precedent is Sainsbury’s attempt to acquire Asda. The CMA blocked that deal in 2019, concluding that it would reduce competition and could push up prices for customers. That precedent provides context for the regulatory scrutiny, but does not determine the outcome of a potential merger with Morrisons.

A deal proposed in a sector undergoing change

The talks took place as the chains compete with the expansion of Aldi and Lidl and consumers continue to focus on prices. Morrisons, owned by investment firm Clayton, Dubilier & Rice since 2021, carries substantial debt and has undertaken a cost-saving and reorganisation plan. Sainsbury’s, meanwhile, has signalled a greater focus on its grocery business and sold Argos in 2026.

The possibility that talks could resume does not mean a deal is under way. For now, the concrete fact is that the exploratory talks ended in February; any future negotiations and their potential approval remain uncertain.