The new owner of Morrisons has offered to sell 87 front yards at petrol stations in a bid to get competition approval from the UK’s fourth-largest supermarket for £ 7 billion.
The Competition and Markets Authority (CMA) said it “intends to” accept the plan from Clayton, Dubilier & Rice, a US private equity firm that owns a series of gas stations but will consult with it before making a final decision.
A CMA study found that the takeover could lead to a loss of competition and potentially higher petrol prices for drivers in 121 areas.
CD&R owns the Motor Fuel Group, the UK’s largest independent petrol station operator with 921 outlets, while Morrisons operates 339 in England, Scotland and Wales.
While the number of gas stations CD&R is offering to sell – all of which are Motor Fuel Group sites – is lower than the number of areas where concerns have been identified, the CMA said the sale of some front yards will affect many areas.
Colin Rafteri, senior director of mergers at Watchdog, said: “The sale of these gas stations will keep the competition going and prevent the loss of motorists due to this deal, which is especially important when prices have recently reached record levels. If we conclude that the competition issues have been addressed after consultation on the CD&R offer, the transaction will be cleared. “
The agreement will prevent a full CMA investigation, which could take more than six months, withholding CD & R’s plans for Morrisons.
The private equity firm said placing Morrisons in the front yards of the Motor Fuel Group could be an important way to expand the Bradford-based supermarket.
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An ongoing investigation would be problematic for Morrisons, who has already warned that profits are likely to suffer a significant blow this year as the cost of living crisis and disruption over Ukraine’s war weighs heavily on the food market.
Morrisons has lost market share in recent months as food market inflation has prompted buyers to turn to discounters such as Aldi and Lidl, while larger rivals Morrisons, Sainsbury’s and Tesco are throwing millions of pounds to keep prices down. buyers.
The acquisition of Morrisons, which employs around 120,000 people in the UK in 497 supermarkets as well as factories, farms and a fishing trawler owned by the company, will bring the chain into private hands for the first time since the founding family included it in the 1967 stock market. d.
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