Sainsbury's held merger talks with Morrisons this year to explore a multibillion-pound deal, according to reporting from the Financial Times and Sky. The two companies conducted exploratory negotiations, though they are no longer in active discussions, the reports indicate.
A combined entity would have controlled 23.6% of the UK supermarket market, placing it second behind Tesco's 27.8% share. Such a merger would represent the largest restructuring of Britain's supermarket sector in decades.
The Guardian does not name sources for the talks or specify when during the year the negotiations occurred. No financial valuation for a potential deal is provided. Neither Sainsbury's nor Morrisons has publicly confirmed the discussions or their reasons for ending them.