Before Discussing Big Deal, CEO Sings 'We're in the Money'

Before Discussing Big Deal, CEO Sings 'We're in the Money'

The CEO of Sainsbury's and one of it's largest shareholders, Mike Coupe, was recorded singing "We're in the Money" while waiting for an interview on ITV about his firm's merger with Asda.

J Sainsbury and Walmart have agreed terms on the deal which could create "a dynamic new player" in the United Kingdom retail market with combined revenues of about £51bn.

Coupe's candid camera moment came in a break between dozens of broadcast interviews explaining Sainsbury's merger with Asda, which will see the company jump into the top spot in the supermarket war, overtaking Tesco with annual revenues of £51bn.

When asked what impact the deal could have on Tesco and Morrisons, Mr McKevitt said: "I think it's going to become an even more competitive market place out there". Sainsbury's equity was valued at 6 billion pounds at Friday's close.

There are questions over the future of these sites and it will now be for the Competition and Markets Authority (CMA) to check if this merger is in the public interest.

Nationally, both Sainsbury's and Asda have found themselves in the position that it is becoming increasingly hard to grow market share through the organic route.

More news: WhatsApp's founder Koum to leave amid reports of clashes with Facebook

Sainsbury's stock shot up by 14.4% on Monday after the deal was announced.

The merger, between the UK's number two and three supermarkets, was agreed upon by the two companies but awaits approval from the Competition and Markets Authority (CMA) in order to be finalised.

Together, Sainsbury's and Asda have around 2,800 stores, more than 330,000 employees and a combined market share of 31.4% versus Tesco's 27.6%, according to market researcher Kantar Worldpanel.

It will see Asda owner Walmart hold 42% of the new business and receive £2.97 billion in cash, valuing Asda at £7.3 billion.

Bernstein analyst Bruno Monteyne pointed to the execution risks, noting Morrisons-Safeway lost 28% of their sales through a combination of store sales, integration problems and culture clash when they merged. Two Walmart representatives will join the board as non-executive directors. In particular it is concerning for towns, such as Flint, where we have both an Asda and a Sainsbury's right next door to each other.

Related Articles