Merger Update

RNS Number:1421O
Dept Trade & Industry
30 July 2003

PRESS RELEASE



PATRICIA HEWITT REFERS THE PROPOSED ACQUISITION BY J SAINSBURY PLC OF 171
SOMERFIELD STORES FROM THE "SPRINGWATER" BIDDING GROUP TO THE COMPETITION
COMMISSION



The proposed acquisition by J Sainsbury of 171 Somerfield Stores from the 
"Springwater" Bidding Group was referred to the Competition Commission (CC) 
today by the Secretary of State for Trade and Industry, Patricia Hewitt.



Her decision was made in accordance with advice from the Office of Fair Trading
(OFT).



Mrs Hewitt said:



"The OFT has advised me that there is a significant prospect that this proposed
acquisition may be expected to result in a substantial lessening of competition.
  It would lead to a substantial number of overlaps at the local level between
Sainsbury and Somerfield stores.  Determining the loss of competition will
require a detailed assessment by the Competition Commission of each local area
in which an overlap occurs.



"I have considered the OFT's advice and accept its conclusions.  I am therefore
referring the proposed merger to the Competition Commission so that it can be
fully investigated."



The decision to make a reference does not in any way prejudge the question of
whether or not the proposed merger would be against the public interest.  It is
for the CC to report on this after investigation.



The CC will report by 18 November 2003.





Notes for Editors



1.         The Fair Trading Act 1973 empowers the Secretary of State to refer to
the Competition Commission actual or proposed mergers which create or increase a
market share of 25% of the supply of particular goods or services in the UK or a
substantial part of the UK, or involve the transfer of assets exceeding #70
million.






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