On the 28th April 2018, supermarket giants ASDA and Sainsburys announced that they had agreed terms to merge and create an enlarged business.

1) The proposed merger between ASDA and Sainsburys is a friendly merger. Identify the rules that hostile bidders are required to adhere to. 2) The Competition and Markets Authority examined the proposed merger to assess how the deal could affect competition for UK shoppers. Outline the different ways in which mergers can be regulated in the UK. 3) Assume that ASDA were plotting a hostile takeover bid for Sainsburys. Outline the actions that Sainsburys could take if they dont think that the takeover bid is in the best interests of their shareholders.