The Financial Times, citing people familiar with the matter, reported that preliminary talks over a combination took place between November 2025 and February this year before Sainsbury’s decided to walk away, Reuters reported on Monday. The talks are no longer active, though people close to the situation did not rule out negotiations restarting in future. Sky News separately reported that Morrisons’ owner, private equity firm Clayton Dubilier & Rice, would remain open to a tie-up with one of its major competitors. Spokespeople for both Sainsbury’s and Morrisons declined to comment.
A combined business would hold about 23.6% of the UK grocery market, narrowing the gap to Tesco at 27.8%, according to Worldpanel by Numerator figures cited in the reporting. The FT noted Sainsbury’s would almost certainly have to sell stores to gain approval, and any deal would be closely scrutinized by the Competition and Markets Authority. In 2019 the CMA blocked Sainsbury’s proposed £7.3 billion takeover of Asda. Clayton Dubilier & Rice won an auction to buy Morrisons for £7 billion in 2021.
Sainsbury’s shares were little changed on Monday, up 0.1% at 323.70p in afternoon trading in London.