Sainsbury's, Britain's second-largest supermarket group, has named Martin Scicluna as its next chairman, giving him the job of steering through its £7.3 billion takeover of rival Asda.
Scicluna, who currently holds the same role at RSA Insurance and property firm Great Portland Estates, will join Sainsbury's board as chairman designate and non-executive director on 1 November.
He will succeed David Tyler as non-executive chairman in March 2019 or soon after. Tyler has held the role since 2009.
Commenting on his appointment, Scicluna said, “I’m delighted to join Sainsbury’s, a company I have long admired for its clear customer focus and its strong values. Mike Coupe and his management team have positioned the business for a successful future of delivering significant value for shareholders, customers, and other stakeholders. I am looking forward to working with Mike and his team and my new board colleagues.”
In April, Sainsbury's agreed a combination with Walmart-owned Asda – the number-three player – which will overtake Tesco as Britain's biggest supermarket chain.
The deal is being scrutinised by Britain's regulator, the Competition and Markets Authority (CMA).
The CMA's probe is expected to be lengthy, and Sainsbury's does not anticipate the deal being concluded until the second half of 2019.
Remuneration
On appointment, Scicluna's fee will be £237,500 annually as chairman designate and £475,000 annually as chairman.
His appointment was announced ahead of Sainsbury's annual shareholders' meeting on Wednesday.
Shares in Sainsbury's – up 36% this year, on the back of the Asda deal – closed on Tuesday at 329.4 pence, valuing the business at £7.2 billion.
Sainsbury's senior independent director, Dame Susan Rice, commented on Tyler's impending departure, saying, “David has been an outstanding steward of Sainsbury’s during his time as chairman, providing invaluable strategic counsel and guidance, including on the acquisition of Home Retail Group and the proposed combination of Sainsbury’s and Asda.
"We are grateful for his substantive and important ongoing contribution. Martin brings a breadth of experience and leadership, and we look forward to welcoming him to the Sainsbury’s board at this pivotal time for the business,” Rice added.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
