Asda’s deal of around £600 million to buy Co-op petrol forecourts could result in “higher prices or less choice” for motorists and shoppers in 13 locations, the UK competition watchdog has warned. The Competitions and Market Authority (CMA) opened an investigation into the acquisition of 132 petrol stations and adjoining shops in January.
On Tuesday, the CMA said the takeover deal “raises competition concerns in 13 locations across the UK, in each of which the merging businesses currently compete for customers and would not face sufficient competition after the merger”. Asda now has five working days to offer a proposal to the regulator to help address its concerns.
The UK’s third largest supermarket chain, which was bought by the billionaire Issa brothers and private equity backers TDR Capital, secured the takeover in October as part of plans to grow its petrol station business.
