London Daily

Focus on the big picture.

Asda deal for Co-op petrol stations could lead to higher prices or less choice, CMA warns

Asda deal for Co-op petrol stations could lead to higher prices or less choice, CMA warns

Britain's third largest supermarket now has five days to advance legally binding proposals to remedy the competition watchdog's concerns.
Asda has been told to fix 13 areas of concern in its plan to buy Co-op petrol stations over fears the deal could lead to higher prices or less choice.

The Competition and Markets Authority (CMA) has given Asda five days to remedy the issues identified or risk a more in depth investigation of the deal.

There are 13 areas across the UK where the CMA is concerned that merging Asda and Co-op businesses could mean insufficient competition.

At present the businesses compete for customers in those locations, which would no longer be the case when stores are merged.

"There's a risk that customers could face higher prices or worse services in a small number of areas where Asda would face insufficient competition in either groceries or fuel," the CMA's senior director of mergers, said.

Any proposals advanced by Asda would be legally binding.

Asda, Britain's third largest supermarket, paid £611m for 132 petrol forecourts in August last year. The Co-op Group sold its petrol forecourts division in an effort to reduce debt and strengthen its balance sheet.

Responding to the CMA's findings, Asda's co-owner said it was looking forward to working constructively with the CMA over the coming days as it considers the findings.

"We remain committed to 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," Mohsin Issa said.

Asda was formerly owned by Walmart but is now owned by the Issa brothers and TDR Capital, who also control EG Group, one of the largest independent fuel retailers in Europe.
Newsletter

Related Articles

London Daily
0:00
0:00
Close
Public Uptake of AI Tools Remains Limited
New Tax Rules on Second Homes in the UK to Address Housing Crisis
Can Europe Transition to a War Economy?
France Implements Stricter Airbnb Regulations
Upcoming Pandemic Inevitable, Warns Former UK Chief Scientific Advisor
British Tourists Assaulted by Bouncers in Pattaya, Thailand
Facebook Delays Removal of Fake Account Exploiting TikTok Star
Billionaire Non-Domicile Flees UK Amid Tax Law Changes
Theresa May Admits Mistakes Over Immigration Policies
Nicki Minaj's Manchester Concert Canceled After Amsterdam Arrest
UK Conservative Party Proposes Mandatory National Service at 18
Kate Middleton's Public Absence Throughout 2024
Asylum Seekers Arriving In UK by Sea Exceed 10,000 This Year
UK Criticizes ICJ Order on Israel's Rafah Assault
Ukraine's Fight Against Corruption Gains Ground Amid War
Czech President Petr Pavel Injured in Motorcycle Accident
Record Number of Abortions in England and Wales
Paul McCartney Honours Bruce Springsteen at Ivor Novello Awards
US and UK to Reject ICJ Ruling on Israel's Rafah Offensive
World Court Orders Immediate Halt to Israeli Offensive in Gaza
Understanding FLiRT COVID Variants and Their Impact
Baltic NATO Members to Construct 'Drone Wall'
Global Life Expectancy Dropped By 2 Years Due To COVID-19
Macron Halts New Caledonia Voting Reform After Riots
Rishi Sunak Shelves Rwanda and Smoking Policies Ahead of Election
US Refuses World Court Jurisdiction
China Conducts Surprise Military Drills Around Taiwan
Grim Polls Predict Major Loss for PM Rishi Sunak
Rishi Sunak's Campaign for UK Election: Key Issues Highlighted
German Property Crisis Worsens as Foreign Investment Declines
Princess of Wales's Taskforce Calls for Business Investment in Early Childhood
Campaign Groups Condemn UK Report on Protests
Former Royal Marine Charged with Espionage Found Dead
Australian PM Calls for Julian Assange's Freedom
ICC Seeks Arrest Warrants for Israeli and Hamas Leaders
UK's Infected Blood Scandal: Conclusion Nears After Seven Years
Julian Assange Granted Right to Challenge US Extradition
Congo Army Thwarts Attempted Coup Involving Americans and a British Citizen
Ireland's Homeless Gain Voting Rights
Blinken orders crackdown on Israel-Hamas leaks
Julian Assange Faces US Extradition: Key Facts
Jacob Zuma Takes Campaign to ANC Stronghold Soweto
Attempted Assassination of Slovakia PM Robert Fico: Investigation Ongoing
What Happens If an Iranian President Dies in Office?
Spain Recalls Ambassador After Argentina President's Remarks
Rishi Sunak Faces Cabinet Backlash Over Proposed Changes to Foreign Student Visas
Rwanda Denies Entry to Human Rights Researcher
Iranian President Ebrahim Raisi Reportedly Killed in Helicopter Crash
Blue Origin Resumes Space Tourism with 90-Year-Old Ed Dwight
Rishi Sunak and Wife Akshata Murty Wealthier Than King Charles
×