In a joint statement, a spokesperson for Asda and Sainsbury's said:
"J Sainsbury plc and Asda Group Limited attended a Competition Appeal Tribunal hearing today concerning the process and timetable of their proposed merger.
The Court ruled in the Parties' favour and found that the timetable for responding to materials and attending a main party hearing were both unfair.
The Parties took this step reluctantly and look forward to re-engaging with the CMA and Panel and working constructively with them going forward."