Sainsbury\'s-Asda deal in doubt as UK regulator raises big objections

Sainsbury's planned takeover of Walmart-owned Asda is in doubt, As British regulators warn the $9.5 billion bid should be blocked, Unless they sell a large number of stores, or even one of the brands.

Britain's Competition and Markets Authority says the deal could lead to higher prices for shoppers, And a smaller range and quality of products offered.

Shares in Sainsbury's plunged as much as 16 percent on the news .... Which deals a blow to each company's plan to build Britain's largest supermarket group.

With regulators saying its 'difficult' for the firms to address these concerns.

Sainsbury's says it disagrees with the findings, Calling the CMA's view 'inconsistent with comparable cases'.

The deal was agreed in April last year - with U.S. firm Walmart taking a 42 percent stake in the combined business.

Sainsbury's and Asda main aim is to generate buying power and savings to compete with fast-growing discounters Aldi and Lidl, As well as Britain's biggest supermarket Tesco and online retailers.

The CMA's final report is due by April 30.