Sainsbury’s has said it will make “substantial” investments in technology if its proposed merger with rival Asda is approved.
The London Stock Exchange-listed company said a combination between the two supermarket groups will create “a dynamic new player in UK retail”.
“Bringing Sainsbury’s and Asda together will result in a more competitive and more resilient business that will be better able to invest in price, quality, range and the technology to create more flexible ways for customers to shop,” the company said in a statement to shareholders.
Sainsbury’s added that the deal will allow the combined business to benefit from a close relationship with Walmart by sharing knowledge and technology developments.
If the merger is approved, the combined company will make “substantial investments” in technology, to create more flexible ways of shopping across stores and through digital channels.
The deal is subject to approval, both from Sainsbury’s’ and Asda’s shareholders and from the Competition and Markets Authority (CMA).