Martin Scicluna, the chairman of an insurance company called RSA, is set to join the board of J Sainsbury. The news arrives as the supermarket embarks on its £15 billion mega-merger deal with Asda.
The appointment will see Scicluna take the place David Tyler, the long-serving member of the board. It could be made as early as this coming Wednesday when Sainsbury’s is set to hold the annual meeting of the company in London.
Mr Tyler is stepping down from his after nearly nine years as the chairman of Sainsbury’s. The new corporate governance guidelines of the United Kingdom that is intended to promote boardroom diversity and reduce groupthink, say that non-executives should not spend more than nine years in total on the board of a company.
Scicluna has a vast experience in blue-chip boardrooms. He was able to work at giants such as Worldpay and Lloyds Banking Group. He also spent around 30 years as a partner at Deloitte, a big four company.
It was reported by Sky News that the announcement was likely to boost the confidence of the investors, some of whom had been sceptical regarding the £15 billion tie-ups of Sainsbury’s with Asda, a Walmart-owned company.
Currently, the said merger is being scrutinised by the Competition and Markets Authority (CMA). If it is approved, it would create a 2,800 store behemoth – the largest food retailer in the United Kingdom. The chief executives of both Asda and Sainsbury have already been questioned before a parliamentary select committee to explain its possible impact on the suppliers.
The said deal would value Asda at £7.3 billion, and hand Walmart £3 billion in cash as well as a stake of 42 percent in the merged business.
Sainsbury’s refused to issue a comment regarding the matter.