blonde poker forum
Welcome, Guest. Please login or register.
March 28, 2024, 03:48:38 PM

Login with username, password and session length
Search:     Advanced search
2272476 Posts in 66752 Topics by 16945 Members
Latest Member: Zula
* Home Help Arcade Search Calendar Guidelines Login Register
+  blonde poker forum
|-+  Community Forums
| |-+  The Lounge
| | |-+  Sainsbury's-Asda merger.
0 Members and 1 Guest are viewing this topic. « previous next »
Pages: [1] 2 3 Go Down Print
Author Topic: Sainsbury's-Asda merger.  (Read 5520 times)
RED-DOG
International Lover World Wide Playboy
Global Moderator
Hero Member
*****
Offline Offline

Posts: 46911



View Profile WWW
« on: February 21, 2019, 11:59:53 AM »

Why would it be blocked?

Surely market forces would prevail and if the public were disadvantaged they could just vote with their feet and shop at Tesco/Morrisons/Co-op/Lidl/Aldi ect.

It's not as if they have a monopoly is it?

Why is this different than any other merger?
Logged

The older I get, the better I was.
tikay
Administrator
Hero Member
*****
Offline Offline

Posts: I am a geek!!



View Profile
« Reply #1 on: February 21, 2019, 12:27:43 PM »


It's what happens when the Government - in this case via the CMA - meddle in business.

And it's also exactly why our rail system is such a mess. If you look at how the private & nationalised parts of the railway interact it's a complete & utter clusterfuck.
Logged

All details of the 2016 Vegas Staking Adventure can be found via this link - http://bit.ly/1pdQZDY (copyright Anthony James Kendall, 2016).
RED-DOG
International Lover World Wide Playboy
Global Moderator
Hero Member
*****
Offline Offline

Posts: 46911



View Profile WWW
« Reply #2 on: February 21, 2019, 12:34:00 PM »

Surely though, if the CMA are going to mess about with the business decisions of huge companies they have to prove that they have an airtight reason for doing so?
Logged

The older I get, the better I was.
tikay
Administrator
Hero Member
*****
Offline Offline

Posts: I am a geek!!



View Profile
« Reply #3 on: February 21, 2019, 12:38:58 PM »

Surely though, if the CMA are going to mess about with the business decisions of huge companies they have to prove that they have an airtight reason for doing so?

Well they have a remit to prevent "anti-competitive" behaviour (aka monopolys).

This will make your eyes glaze over, but here's how the Government justify it;


https://www.gov.uk/government/collections/how-the-cma-investigates-competition-and-consumer-issues


Logged

All details of the 2016 Vegas Staking Adventure can be found via this link - http://bit.ly/1pdQZDY (copyright Anthony James Kendall, 2016).
Skippy
Hero Member
*****
Offline Offline

Posts: 1243


View Profile WWW
« Reply #4 on: February 21, 2019, 01:03:29 PM »

According to this:
https://www.kantarworldpanel.com/en/grocery-market-share/great-britain

combined they will have a 31.2% share of the UK grocery business. Seems reasonable to stick your nose into if you were me.

Where I live, my two biggest nearest supermarkets are a Sainsbury and an Asda, so if you gave me the choice I'd rather they stayed separate. But I'm not really that bothered.
Logged
Doobs
Hero Member
*****
Offline Offline

Posts: 16570


View Profile
« Reply #5 on: February 21, 2019, 01:04:38 PM »

Why would it be blocked?

Surely market forces would prevail and if the public were disadvantaged they could just vote with their feet and shop at Tesco/Morrisons/Co-op/Lidl/Aldi ect.

It's not as if they have a monopoly is it?

Why is this different than any other merger?


Because they will have a third of the market, and tesco will have another third, so between them they can act as a duoploy; they can certainly behave like a monopoly in some areas.  You may be able to choose but some old biddy in a small town without a car may not.  You can see what happens with local monopolies by observing petrol prices that Morrisons charge in different locations.

It is clearly nothing like the way the railways are run which has several local monopoloies, hence you can't choose between scotrail and southeastern.
Logged

Most of the bets placed so far seem more like hopeful punts rather than value spots
Jon MW
Hero Member
*****
Offline Offline

Posts: 6191



View Profile
« Reply #6 on: February 21, 2019, 01:12:45 PM »

According to this:
https://www.kantarworldpanel.com/en/grocery-market-share/great-britain

combined they will have a 31.2% share of the UK grocery business. Seems reasonable to stick your nose into if you were me.

Where I live, my two biggest nearest supermarkets are a Sainsbury and an Asda, so if you gave me the choice I'd rather they stayed separate. But I'm not really that bothered.


This is what the problem is - in many localities they will have a monopoly.

Logged

Jon "the British cowboy" Woodfield

2011 blonde MTT League August Champion
2011 UK Team Championships: Black Belt Poker Team Captain  - - runners up - -
5 Star HORSE Classic - 2007 Razz Champion
2007 WSOP Razz - 13/341
teddybloat
Sr. Member
****
Offline Offline

Posts: 755


View Profile
« Reply #7 on: February 21, 2019, 01:58:59 PM »

The monopolies aren't a problem. I can't think of an example where companies start exploiting their customers. When a supermarket sends independent retailers under its because they offer more choices e and lower prices. When the independents go under we don't see supermarkets scaling back choice and ramping up prices

And where their monopoly does see them stagnate we see innovative alternatives like Aldi move in and hoover up market share.

Government should stay the hell out of this


A lot of the more complicated monopoly cases often take years and by the time they are close to ending the so called collosous has been out flanked by more nimble competition.

Think of the strangle hold that the likes of dell, nokia, EMI etc had over their respective industries before being blind sided by things like MP3 players and smart phones
Logged
Longines
Gamesmaster
Hero Member
*****
Offline Offline

Posts: 3798


View Profile
« Reply #8 on: February 21, 2019, 02:47:04 PM »

The monopolies aren't a problem. I can't think of an example where companies start exploiting their customers. When a supermarket sends independent retailers under its because they offer more choices e and lower prices. When the independents go under we don't see supermarkets scaling back choice and ramping up prices


https://www.google.co.uk/search?q=predatory+pricing+uk+supermarket

Seems to be a few examples of exactly those behaviours.
Logged
Pokerpops
Hero Member
*****
Offline Offline

Posts: 1423


View Profile
« Reply #9 on: February 21, 2019, 03:43:59 PM »

It’s not just customers who can be exploited by this situation. Suppliers will also be squeezed on price and payment terms.
Logged

"More than at any other time in history, mankind faces a crossroads. One path leads to despair and utter hopelessness. The other, to total extinction. Let us pray we have the wisdom to choose correctly."
teddybloat
Sr. Member
****
Offline Offline

Posts: 755


View Profile
« Reply #10 on: February 21, 2019, 05:45:20 PM »

The monopolies aren't a problem. I can't think of an example where companies start exploiting their customers. When a supermarket sends independent retailers under its because they offer more choices e and lower prices. When the independents go under we don't see supermarkets scaling back choice and ramping up prices


https://www.google.co.uk/search?q=predatory+pricing+uk+supermarket

Seems to be a few examples of exactly those behaviours.

Customers being exploited by 40% discounts and more choice, staff being exploited with higher pay and career progression.

The suppliers are squeezed down to where their price is close to the marginal cost. But consumers benefit from this.

And whilst this giant monolithic entity was squeezing out all competition in 2004 by 2014 it had lost a significant market share to Aldi and Lidl who set up their own supply chains and out manouvered the supposedly unstoppable monopoly, all without  government intervention.
« Last Edit: February 21, 2019, 05:47:33 PM by teddybloat » Logged
bobAlike
Hero Member
*****
Offline Offline

Posts: 5922


View Profile
« Reply #11 on: February 21, 2019, 08:51:05 PM »

As long as it keeps the riffraff out of Waitrose they can merge all the like.
Logged

Ah! The element of surprise
RED-DOG
International Lover World Wide Playboy
Global Moderator
Hero Member
*****
Offline Offline

Posts: 46911



View Profile WWW
« Reply #12 on: February 21, 2019, 09:01:18 PM »

As long as it keeps the riffraff out of Waitrose they can merge all the like.

lol
Logged

The older I get, the better I was.
vegaslover
Hero Member
*****
Offline Offline

Posts: 4618


View Profile
« Reply #13 on: February 21, 2019, 11:42:04 PM »

Poor business and lack of foresight by Asda/Sainsbury imo.
It was pretty obv when the proposed merger was first published that the Govt/monopolies commission were going to be all over it. They must know the rules around it.
Logged
Longines
Gamesmaster
Hero Member
*****
Offline Offline

Posts: 3798


View Profile
« Reply #14 on: February 21, 2019, 11:46:12 PM »

The monopolies aren't a problem. I can't think of an example where companies start exploiting their customers. When a supermarket sends independent retailers under its because they offer more choices e and lower prices. When the independents go under we don't see supermarkets scaling back choice and ramping up prices


https://www.google.co.uk/search?q=predatory+pricing+uk+supermarket

Seems to be a few examples of exactly those behaviours.

Customers being exploited by 40% discounts and more choice, staff being exploited with higher pay and career progression.

The suppliers are squeezed down to where their price is close to the marginal cost. But consumers benefit from this.

And whilst this giant monolithic entity was squeezing out all competition in 2004 by 2014 it had lost a significant market share to Aldi and Lidl who set up their own supply chains and out manouvered the supposedly unstoppable monopoly, all without  government intervention.

Terry Leahy's love child?
Logged
Pages: [1] 2 3 Go Up Print 
« previous next »
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.21 | SMF © 2015, Simple Machines Valid XHTML 1.0! Valid CSS!
Page created in 0.195 seconds with 21 queries.