(Standard) - Sainsbury’s has confirmed it plans to merge with Asda following talks with US supermarket giant Walmart.

The chain has announced it has agreed to buy Walmart Inc.'s Asda for £7.3 billion in a deal that will mark a seismic shift in the country’s grocery market. 

J Sainsbury will pay Walmart £4.3 billion worth of stock and £2.98 billion in cash for the supermarket, meaning Walmart will own 42 per cent of the combined company.  

A company statement said Sainsbury's and Asda will both retain their own brands and there will not be any job losses.