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Sainsbury’s held early-stage talks with Morrisons over a potential merger, according to reports Picture: Press Association

Sainsbury’s and Morrisons ‘held talks over possible merger’

Supermarket Sainsbury’s held early-stage talks with rival Morrisons over a potential merger, according to reports.

Sainsbury’s – Britain’s second-biggest grocery chain – is understood to have kicked off preliminary discussions in late 2025 before walking away earlier this year.

Any deal would have marked the biggest in the sector for many years.

The retailers are not believed to be in active talks.

However, it reignites speculation over consolidation in the sector as competition ramps up with discounters Aldi and Lidl continuing to expand, and pricing in sharp focus amid soaring inflation.

London-based Sainsbury’s and Bradford-headquartered Morrisons declined to comment.

Sainsbury’s is the second-largest chain with a 15.2 per cent market share, while Morrisons is fifth in the sector with an 8.4 per cent share, according to the latest industry data from Worldpanel.

Morrisons – previously the fourth-biggest player – was overtaken by Aldi in 2022.

It has been embarking on a turnaround after struggling with trading and having been laden with debts since its private equity takeover by US private equity firm Clayton, Dubilier & Rice in 2021.

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