U.K. food retail is set for a massive shake up as J Sainsbury and Asda plan to merge, creating a new giant for the supermarket sector.
J Sainsbury and Walmart's Asda are joining forces in a deal worth £7.3 billion ($10 billion), they confirmed Monday morning.
If approved by regulators, it will surpass Tesco which is the largest retailer in the U.K. with 25 percent of market share. The two companies merging are the second and the third largest retailers, currently. Given the size of the two companies, regulators will have to assess whether their merger would not create market disruptions.
Kevin O'Byrne, the chief financial officer of Sainsbury's, told CNBC's "Squawk Box Europe": "We think this is a great combination, creating a very dynamic player in the retail market."