SAINSBURY'S £12 billion merger with Asda is facing further scrutiny after two parliamentary committees raised concerns over the impact on shop prices and suppliers.

The chairs of the Business and Environment committees have written to the competition watchdog, urging it to consider issues of "market dominance" and whether the deal will create "local monopolies".

A merger between the duo - the UK's number two and three supermarkets - will create a supermarket titan bigger than Tesco with revenues of £51 billion and a network of 2,800 Sainsbury's, Asda and Argos stores.

Sainsbury's has superstores in Bolton Shopping Centre and Westhoughton and smaller stores in Bromley Cross and Horwich, while Asda has superstores in Burnden, Astley Bridge, Middlebrook and Farnworth and a smaller store in Daubhill.