Statement re CMA provisional findings

20 February 2019

J Sainsbury plc

Statement re CMA provisional findings into proposed merger between J Sainsbury plc and Asda Group Limited

We fundamentally disagree with the provisional findings. These misunderstand how people shop in the UK today and the intensity of competition in the grocery market. The CMA has moved the goalposts and its analysis is inconsistent with comparable cases.

Combining Sainsbury's and Asda would create significant cost savings which would allow us to lower prices. Despite the savings being independently reviewed by two separate industry specialists, the CMA has chosen to discount them as benefits.

We are surprised that the CMA would choose to reject the opportunity to put money directly into customers' pockets, particularly at this time of economic uncertainty.

We will be working to understand the rationale behind these findings and will continue to make our case in the coming weeks.

For further information please contact:

Investor Relations, J Sainsbury plc

James Collins +44 (0) 7801 813074

Media Relations, J Sainsbury plc

Rebecca Reilly +44 (0) 20 7695 7295