Asda

Jobs in areas including bakeries and petrol stations could be affected, sources said.

The CMA said it will carry out a so-called Phase Two in-depth probe to assess how the deal could affect competition for UK shoppers.

The competition watchdog will examine if the tie-up could lead to less choice, higher prices or worse service.

MPs looking into the £12 billion tie-up were concerned about the impact on small suppliers.

Staff are likely to be caught in the crossfire of the £12 billion merger.

Joel Hills Business and Economics Editor

Sainsbury’s and Asda have decided to get hitched and they see only the upside.

It will aim to generate £500 million in cost savings but Sainsbury’s insisted there are no planned store closures.

The merging of the two supermarkets would create a more powerful rival to Tesco.

The supermarket confirmed it is in "advanced discussions" with Asda owner Walmart over a possible deal.

The supermarket has asked customers to return beef and sweet potato stews from its Little Angels range after plastic was found.