The UK competition regulator has warned that private equity firm Clayton, Dubilier & Rice’s (CD&R) £7 billion takeover of Morrisons could lead to higher fuel prices in 121 locations across the UK. In January, the Competition and Markets Authority (CMA) launched an investigation into the supermarket takeover but it has now said it could pursue a deeper probe if these concerns are not addressed.
CD&R, which also owns petrol station giant Motor Fuel Group (MFG), won a lengthy auction to buy the Bradford-based retailer in October. MFG operates 921 petrol stations across England, Scotland and Wales under a number of different brands, while Morrisons runs 339 petrol stations at its supermarkets.
The regulator said it now has concerns over 121 local areas where MFG and Morrisons both have forecourts and would face “limited competition” from other players following the merger. It said “the deal could lead to an increase in prices” due to the lack of competition.
