Competition watchdog approves sale of gas station from Asda’s new owners
The UK competition regulator has accepted an offer from potential new owners of Asda to sell 27 service stations in response to fears that the takeover could push up prices.
In October, billionaires Mohsin and Zuber Issa and private equity fund TDR Capital struck a £ 6.8 billion deal to buy the supermarket chain.
However, the new owners were unable to work directly with Asda after regulators in April raised concerns that the deal could lead to higher gasoline prices for motorists in the city. 36 locations.
The Issa brothers proposed a deal last month that would allow them to sell 27 of their current courtyards.
On Wednesday, the Competition and Markets Authority (CMA) said it had now “officially accepted” the proposal, meaning the new owners can start driving a new strategy at Asda.
However, new Asda owners must now select one or more buyers to acquire the forecourt sites, which must be approved by the CMA.
The supermarket chain said the CMA update will allow its management team to start working with TDR and the Issa brothers on their new plans for the business.
Asda CEO and Chairman Roger Burnley said: “We welcome today’s announcement from the CMA, which means we can now fully embark on the next leg of our journey under a new owner and working with Mohsin, Zuber and TDR to build an even stronger Asda that provides our customers with exceptional choice, value and service in our stores and online.
In a joint statement, TDR and the Issa brothers said: “We welcome today’s announcement by the CMA that marks the end of its review process and the acceptance of our proposed commitments.
“We can now continue our exciting plans for Asda and look forward to working with Asda’s management team to invest in the business to drive growth, including continuing to accelerate Asda’s online offering. , sourcing more from UK farmers and providing greater convenience. to customers.”
EG Group, the brother-owned forecourt giant, operates 395 gas stations, while Asda has 323 locations.