Sainsbury's held merger talks with rival Morrisons this year to create a multibillion-pound supermarket combination, according to reporting by the Financial Times and Sky News. The two companies conducted exploratory negotiations, though they are believed to no longer be in active discussions.
A combined entity would have controlled 23.6% of the UK supermarket market, the reports indicate. This would still trail Tesco, which holds 27.8% of the market. Such a deal would represent the largest reshaping of Britain's supermarket sector in decades.
The talks represent a significant moment in retail consolidation, though the current status of negotiations remains unclear from available reporting. The Financial Times and Sky News first reported the discussions, citing sources familiar with the matter, but neither Sainsbury's nor Morrisons has publicly confirmed or commented on the talks.