A PROBE into the merger of two supermarket chains with stores barely three miles away in Basingstoke has been welcomed.

Hampshire county councillor Stephen Reid, who represents Basingstoke South division on the authority, has praised the decision of the Competition and Markets Authority (CMA) to conduct an in-depth investigation into the proposed merger of Sainsbury’s and ASDA.

Cllr Reid fears that if the merger were to go ahead, one of the two stores would close, to the detriment of residents in Brighton Hill in particular.

The councillor said: “These two supermarkets are near neighbours in Hatch Warren and Brighton Hill.

“Their selling areas overlap and the danger is, should one of them close, that a lot of people will be disadvantaged.

“Competition would be reduced, choice would be cut and prices could rise.

“My feeling is that ASDA would be at most risk.

“I remember when we were fighting for a new supermarket on Brighton Hill after Robert Greig’s left, that Sainsbury’s didn’t want one there.

“I fear that, if the two chains were to merge, the temptation to close one store would be too great and, as Sainsbury’s has a petrol station and ASDA doesn’t, it would be the ASDA store that was most at risk.

“ASDA provides an important service to the residents of Brighton Hill where many people welcome the ability to walk to a nearby supermarket for their shopping.

“The Brighton Hill ASDA is the only one in Basingstoke.

“I hope that the Competition and Markets Authority will study the Brighton Hill/Hatch Warren situation closely when it invites the views of local people.”

In August, the CMA opened its initial investigation into the merger.

It then announced last week a second phase will be launched which constitutes an in-depth investigation led by an inquiry group chosen from the CMA’s independent panel members.

The CMA said: “The companies are two of the largest grocery retailers in the UK and their stores overlap in hundreds of local areas, where shoppers could face higher prices or worse quality of service.”

The body said it would look at issues relating to fuel, general merchandise such as clothing and what it describes as “increased buyer power over suppliers.”

The two supermarket giants announced the planned merger in April.