The Competition and Markets Authority (CMA) has on Thursday launched an inquiry into the £7 billion takeover of supermarket group Morrisons by Clayton, Dubilier & Rice (CD&R).
The watchdog has earlier issued an Initial Enforcement Order in October last year, prohibiting US private equity group CD&R from integrating Morrisons with its operations or transferring ownership of the company until the deal is cleared.
The CMA is expected to announce its decision whether to clear the deal with or without remedies or move to a detailed Phase 2 investigation by 24 March 2022.
The initial investigation will look whether the transaction would lead to a “substantial lessening of competition” within any market or markets in the UK for goods or services. In its notice to the parties, the CMA said it has “sufficient information” to begin an investigation.
There has been speculation that, through the deal, CD&R could combine its 918 Motor Fuel Group (MFG) fuel forecourts with the 339 owned by Morrisons, opening Morrisons convenience stores on the sites.
CD&R beat Softbank-owned Fortress Investment Group to buy Morrisons in an auction. Morrisons shareholders have backed the takeover.
Brian McLister
