The merger will create a network of 2,800 Sainsbury’s, Argos and Asda stores with 330,000 employees, according to a stock exchange announcement published this morning.
The new combined business will be chaired by Sainsbury’s chairman and led by Mike Couple, current Sainsbury’s CEO.
Asda will continue to be run from its head office in Leeds led by its current CEO Sean Clarke who will take up a seat on the board of the combined business.
The deal will be subject to a lot of scrutiny, not least from shareholders and the Competition and Markets Authority.
Both need to approve any deal before it is finalised – even with the approval the merger would not be completed until the second half of 2019.
Sainsbury’s biggest current shareholder, the Quatar Investment Company, has already said it is supporting the merger.