SHOPPERS can look forward to cheaper prices in both Asda and Sainsbury's after a merger of the two supermarket giants was announced this morning.

The supermarkets say they expect to be able to lower prices "by around 10 per cent on many of the products customers buy regularly".

Roger Burnley, Chief Executive Officer of Asda, said: “The combination of Asda and Sainsbury's into a single retailing group will be great news for Asda customers, allowing us to deliver even lower prices in store and even greater choice.

"Asda will continue to be Asda, but by coming together with Sainsbury's, supported by Walmart, we can further accelerate our existing strategy and make our offer even more compelling and competitive.

"From my six years with Asda and ten years with Sainsbury's, I know first hand that both organisations are fortunate to employ some of the most talented and customer-focused colleagues in this market and I am excited by the opportunity of the two coming together.”

The proposed combination of Asda Group Limited, who is owned subsidiary of Walmart, and J Sainsbury plc, would create an "enlarged business", according to a statement issued.

David Tyler, chairman of Sainsbury's, said: “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.

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

"The proposal will bring together two of the most experienced and talented management teams in retail at a time when the industry is undergoing rapid change.

"We welcome Walmart as a significant shareholder and look forward to working closely with them.”

Mike Coupe, Chief Executive Officer of Sainsbury's, said: “"Bringing Sainsbury's and Asda together will result in a more competitive and more resilient business that will be better able to invest in price, quality, range and the technology to create more flexible ways for customers to shop."

Asda has recently delivered its fourth consecutive quarter of positive like-for-like sales growth, as its offer continued to resonate with customers.

In the financial year to December 31 2017, Asda saw a 2.6 per cent growth in estimated sales to approximately £22.2bn and a return to positive like-for-like growth for the full year.

This was driven by a return to volume growth in own label grocery and fresh food, supported by price and quality investments.

It also experienced strong growth online, both groceries and clothing, driven by improvements in customer proposition and customer experience.

The potential impact on employees at the two retail outlets is as yet unknown, but Sainsbury's CEO Mr Coupe has given assurances that the merger will not lead to store closures or job losses.