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Sainsbury (J) (SBRY)

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idpickering
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Sainsbury (J) (SBRY)

#202491

Postby idpickering » February 20th, 2019, 7:41 am

We fundamentally disagree with the provisional findings. These misunderstand how people shop in the UK today and the intensity of competition in the grocery market. The CMA has moved the goalposts and its analysis is inconsistent with comparable cases.

Combining Sainsbury's and Asda would create significant cost savings which would allow us to lower prices. Despite the savings being independently reviewed by two separate industry specialists, the CMA has chosen to discount them as benefits.

We are surprised that the CMA would choose to reject the opportunity to put money directly into customers' pockets, particularly at this time of economic uncertainty.

We will be working to understand the rationale behind these findings and will continue to make our case in the coming weeks.


https://www.investegate.co.uk/sainsbury ... 04135785Q/

idpickering
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Re: Sainsbury (J) (SBRY)

#202493

Postby idpickering » February 20th, 2019, 7:51 am

The findings from authority are here; Provisional findings

20 February 2019: The CMA has provisionally found extensive competition concerns as part of its in-depth investigation of the proposed merger between Sainsbury’s and Asda.


https://www.gov.uk/cma-cases/j-sainsbur ... er-inquiry

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Re: Sainsbury (J) (SBRY)

#202501

Postby Horsey » February 20th, 2019, 8:35 am

Strange that the Tesco and Morrisons share prices have also gone down on the news.....

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Re: Sainsbury (J) (SBRY)

#202523

Postby idpickering » February 20th, 2019, 9:36 am

Horsey wrote:Strange that the Tesco and Morrisons share prices have also gone down on the news.....


Such is the weakness in retail, and the shares of them. I don't mind admitting considering giving SBRY the boot, but the horse has already bolted. I'm certainly not topping up.

Ian.

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Re: Sainsbury (J) (SBRY)

#202877

Postby idpickering » February 21st, 2019, 11:38 am

This from TMF;

Is there any hope for J Sainsbury as its mega-merger disintegrates?

J Sainsbury (LSE: SBRY) has fallen to earth with quite a bang this week. Its radical plan to transform the trading landscape through a ‘super-merger’ with Asda is seemingly in tatters after the Competition and Markets Authority suggested it would throw out the planned tie-up as it would be bad for consumers. Suggesting that an alliance could lead to “higher prices, reduced quality and choice, and a poorer overall shopping experience,” Sainsbury’s may be forced to go back to the drawing board to rescue its failing food operations.

The scale of the setback was underlined by the sharp sell-off of Sainsbury’s stock in the wake of the news. The supermarket’s share price collapsed to its cheapest for almost a year as people scratched their heads as to what other steps it can take to reinvigorate its declining stature with British shoppers.

https://www.fool.co.uk/investing/2019/0 ... ntegrates/

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Re: Sainsbury (J) (SBRY)

#203063

Postby Gengulphus » February 22nd, 2019, 4:55 am

Horsey wrote:Strange that the Tesco and Morrisons share prices have also gone down on the news.....

Not so strange, I think: any potential buyer or seller who is hoping even vaguely that they might be taken over at a nice premium must think it less likely now that the CMA appears to be getting stricter about whether they'll allow them to be taken over, and that will translate into them valuing the shares less highly. How much by will depend a great deal on how important that hope is in their thinking, but as an overall average across the market, the price which potential buyers are willing to pay and the price that potential sellers are willing to accept will both have come down, and that will have caused the market prices to fall.

Gengulphus

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Re: Sainsbury (J) (SBRY)

#203092

Postby dspp » February 22nd, 2019, 8:58 am

Also, if the CMA thinks that competition would be reduced by the merger, then Tesco etc are now facing stronger competition than if the merger had gone ahead.

- dspp

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Re: Sainsbury (J) (SBRY)

#207934

Postby idpickering » March 15th, 2019, 3:46 pm

This from TMF;

Why I’d avoid Sainsbury’s and buy this superstock instead

To say that the bosses of J Sainsbury (LSE:SBRY) and J D Wetherspoon (LSE: JDW) aren’t united in their views on Brexit is an understatement.

The supermarket’s chief executive Mike Coupe has been prominent among the UK’s big retail bosses in warning that a no-deal Brexit and trading under World Trade Organisation terms would increase food prices, cause significant disruption, and could put national food security at risk.

Meanwhile, Wetherspoon’s Brixiteer boss Tim Martin has lauded the prospect of a clean break from the EU and free trade, on the grounds it would reduce shop and food prices and be good for his customers.

Whatever the ultimate terms of the final divorce decree and economic repercussions, I’m convinced Sainsbury’s is a stock to avoid, while I’d happily buy Wetherspoon’s shares today, and hold them for the long term. Here’s why.

Ominous

Sainsbury’s has been struggling for a good number of years now. I was unconvinced by its acquisition of Argos in 2016. This upped its exposure to discretionary consumer spending which, from an investment perspective, is not really what I want from a defensive sector like food.

Its announcement last year of an agreed merger with Asda was more promising in this respect. However, as I warned readers, there was a chance the competition regulator would block it, and that even if it did go ahead, I would view it as fraught with execution risk. It now looks like the merger is unlikely to happen.


https://www.fool.co.uk/investing/2019/0 ... k-instead/

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Re: Sainsbury (J) (SBRY)

#207988

Postby PinkDalek » March 15th, 2019, 6:36 pm




That one from Graham Chester (fka MobyDick) who is usually a good read. If you are able to state the author's name, it may encourage others to follow your TMF links (or not, as the case may be). Sorry to say it but I rarely do, although I chanced my arm this time.

Whilst here, thanks for the tip re refreshing the TMF pages, when without a log-in.

idpickering
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Re: Sainsbury (J) (SBRY)

#207995

Postby idpickering » March 15th, 2019, 7:14 pm

PinkDalek wrote:



That one from Graham Chester (fka MobyDick) who is usually a good read. If you are able to state the author's name, it may encourage others to follow your TMF links (or not, as the case may be). Sorry to say it but I rarely do, although I chanced my arm this time.

Whilst here, thanks for the tip re refreshing the TMF pages, when without a log-in.


Thanks for your post, and the idea. I have a soft spot for TMF tbh. I learnt a lot reading their offerings. I shall take up your suggestion. I hold SBRY, and might just buy more soon.

Ian.


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