Sainbury issued a promising trading statement last week but why no mention of margins? It's not alone with all the other multiples reluctant to cover margins in their quarterly updates. Good see that Marks gives them a mention.
Commentary at www.investorschampion.com

StockMarketWire.com
Supermarket chain J Sainsbury said that it and Walmart had agreed to the terms of a proposed £7.3bn acquisition of the US's group's Asda business.

The deal would give Walmart 42% of the combined group's shares, plus £2.975bn in cash.

Walmart, however, would not hold more than 29.9% of the merged entity's total voting rights.

Both the Sainsbury's and Asda brands would be maintained, while Ebitda synergies of at least £500m would be targeted.

Separately, Sainsbury's also announced that its underlying pre-tax profit for the year through 10 March had increased by 1.4% to £589m. For the current financial year, the company said its expectations were in line with current market consensus of £629m.

Group sales rose 9.0% to £31.7m, while sales on a like-for-like basis increased by 1.3%.

Statutory pre-tax profit fell 19% to £409m, weighed by one-off costs associated with proposed changes to store operations, Argos integration costs and Sainsbury's Bank transition costs.

Sainsbury's declared a final dividend of 7.1p per share, up 7.6% on-year.

Merger synergies would largely be comprised of buying benefits, opening Argos in Asda stores and operational efficiencies, Sainsbury's said. It pledged to close no Sainsbury's or Asda stores as a result of the deal.

'We believe that the combination of Sainsbury's and Asda will create substantial value for our shareholders and will be excellent news for our customers and our colleagues,' Sainsbury's chief executive David Tyler said.

'As one of the largest employers in the country, the combined business will become an even greater contributor to the British economy.'

Walmart International chief executive Judith McKenna said the deal was consistent with the US retail giant's strategy of looking for new ways to drive overseas growth.

'We believe this combination will create a dynamic new retail player better positioned for even more success in a fast-changing and competitive UK market,' she said.

The deal will be subject to the approval of UK competition authorities.

A decent short to be had here at some point.

JP Morgan Cazenove today reaffirms its underweight investment rating on Sainsbury (J) PLC (LON:SBRY) and raised its price target to 260p (from 200p).

Most of the reports I have read, imply that this deal won't go through. JPM Caz seem to agree.

Not that I know anything about supermarkets but won't the deal involve a lot of shops being sold by each company due to competition ....Tesco and others are bound to make up a whole list of objections...wanting such an outlet to be sold...etc.....might take half a year to sort out.....and our supermarkets need to see things on a European scale, not just limiting themselves to the UK.....

Sainsburys got to think again.