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Birmingham Post
Birmingham Post
Business
Jon Robinson

Asda's £611m deal to buy the Co-op's petrol station business cleared

Asda's £611m deal to the Co-op's petrol station business has been cleared by Britain's competition regulator.

The Competition and Markets Authority (CMA) has been looking into the deal, which was completed in October, which saw the supermarket giant snap up 132 petrol stations.

Earlier this year the watchdog launched a phase one investigation and in March said the deal could lead to higher prices or less choice in some parts of the country.

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However, the CMA has now cleared the deal and will not open an in-depth phase two investigation.

The ruling comes after Asda offered to sell 13 petrol stations in a bid to ease competition concerns.

In August 2022, the Co-op first revealed plans to sell its 132 petrol stations and attached convenience stores in a bid to bolster its finances.

The Co-op said proceeds from the sale would be reinvested into its core convenience shops, pricing, stores operations and reducing its debt burden.

In October, Asda said the CMA had issued an initial enforcement order, meaning the Co-op sites must remain separate until any probe was completed.

At the time, the supermarket giant said the process is likely to "take until mid-2023".

An official inquiry was launched into the deal in January after the transaction and saw 2,300 workers move over to Asda.

The news comes after Asda announced a deal worth over £2bn to acquire the majority of EG Group's UK and Ireland operations.

Both companies are owned by the billionaire Issa brothers and private equity giant TDR Capital.

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