CMA clears Issa brothers’ Asda takeover after accepting petrol station sale
The UK’s competition authority has today cleared the way for the Issa brothers’ £6.8bn takeover of supermarket Asda after accepting their offer to sell off 27 petrol stations.
The Competition and Markets Authority (CMA) had launched a probe into the deal in April due to fears that acquisition could increase petrol prices for motorists.
The brothers and TDR Capital own EG Group, which operates 395 petrol stations in the UK, while Asda owns 323 sites.
But the body has now accepted the Issa’s offer to sell off 27 of Asda’s petrol stations, which they agreed to buy in a separate £750m deal.
In its final undertakings, published today, the CMA said: “The CMA considers that the undertakings given below by the Issa Brothers and TDR are appropriate to remedy, mitigate or prevent the substantial lessening of competition, or any adverse effect which has or may have resulted from the transaction, or may be expected to result from it, as specified in the decision.”
It had indicated last month that it was likely to accept the offer.
Under the terms of the deal, the Issa brothers must now choose a purchaser for the assets, which the CMA will have to approve.
In a joint statement, TDR Capital and the brothers said: “We welcome the CMA’s announcement today marking the end of its review process and acceptance of our proposed undertakings.
“We can now push ahead with our exciting plans for Asda and look forward to working with the Asda management team to invest in the business to drive growth, including continuing to accelerate Asda’s online offer, sourcing more food from UK farmers, and bringing enhanced convenience to customers.”