Why Sainsbury’s and Morrisons wanted to merge but didn’t take the risk

Sainsbury’s and Morrisons have been in talks for months about a merger that would shake up the British supermarket landscape. The talks broke down, but Morrisons’ owner, Clayton Dubilier & Rice, is keeping the door open to consolidation.

New number two

The British supermarket sector was closer to a mega-merger earlier this year than had previously been known. Sainsbury’s and Morrisons held exploratory talks about a merger between November 2025 and February 2026, according to the Financial Times. Sainsbury’s ultimately pulled the plug on the talks, but those involved have not ruled out resuming discussions.