Sainsbury's reportedly held merger talks with rival Morrisons this year to discuss a multibillion-pound deal. According to reports from the Financial Times and Sky, the two companies engaged in exploratory negotiations.
It is believed that Sainsbury's and Morrisons are no longer in live discussions. A merger between the two would have created a business with a 23.6% market share, placing it behind Tesco's 27.8%, according to analysts at Worldpanel by Numerator.
Morrisons was acquired by US private equity firm Clayton Dubilier & Rice in 2021, a deal that loaded it with over £7bn in debt. The company has since struggled to grow as fast as competitors, with German discounter Lidl surpassing its market share this year.