Inquiry launched into Asda’s takeover of Co-op forecourt business
While the acquisition was formally completed last October and Asda owns the 132 sites, the deal remains subject to regulatory approval from the CMA
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The Competition and Markets Authority (CMA) has launched an investigation into Asda’s acquisition of Co-op’s petrol forecourt business.
Last year, Co-op agreed to sell the business to Asda in a £600m deal. The transaction included 132 grocery retail sites with attached petrol stations.
At the time, Asda said the move formed part of its strategy to enter the convenience retail space, while Co-op said the deal would enable it to focus on its core convenience proposition.
Around 2,300 colleagues currently employed by the Co-op are set to join Asda under TUPE transfer in the coming months following a consultation with USDAW.
While the acquisition was formally completed last October and Asda owns the 132 sites, the deal remains subject to regulatory approval from the CMA.
The CMA said it is now investigating whether the deal “resulted in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition”.
A spokesperson for Asda said: “The acquisition of these sites is part of our long-term strategy to build a convenience business and bring Asda’s great value in fuel and groceries to more customers and communities throughout the UK. We referred the acquisition to the CMA when it completed last October and look forward to working collaboratively with them in the coming months.”
The CMA is now inviting comments on the transaction from any interested parties. The deadline for the first phase of the inquiry is 14 March 2023.
