Sainsbury’s has agreed to buy Asda from US-based Walmart for £7.3 billion in cash and shares, in a landmark deal for the supermarket sector.

Walmart would gain 42 percent of the combined group’s shares under the terms of the deal, plus £2.975 billion in cash. It will not, however, hold more than 29.9 percent of the merged entity’s total voting rights.

Both Sainsbury’s and Asda will still be seen on the high street, with the brands to be kept the way they are now, while Ebitda synergies of at least £500 million would be targeted.

The combined company will own more than 2,800 stores, between Sainsbury’s, Asda and Argos, and some of the UK’s biggest websites. No store closures are planned.

Asda’s CEO, Roger Burnley, said the deal may well bring further price cuts.

“The combination of Asda and Sainsbury’s into a single retailing group will be great news for Asda customers, allowing us to deliver even lower prices in store and even greater choice.

“Asda will continue to be Asda, but by coming together with Sainsbury’s, supported by Walmart, we can further accelerate our existing strategy and make our offer even more compelling and competitive.”

The deal between the two rivals will create the biggest supermarket chain in the UK, with combined revenues of around £51 billion.

However, the deal is not yet completely concluded – Sainsbury’s shareholders still need to give their approval, as well as the regulators, who may have concerns over increased pressure on the chains’ suppliers.