The Competition and Markets Authority (CMA) has on Thursday accepted undertakings by the private equity firm Clayton, Dubilier & Rice Holdings (CD&R) to divest 87 MFG petrol stations, thereby clearing the Morrisons acquisition.
The CMA has earlier flagged competition concerns over the acquisition of supermarket group by CD&R, which also owns Motor Fuel Group (MFG), the largest independent operator of petrol stations in the UK with 921 forecourts. Morrisons operates 339 sites.
The watchdog, following its initial investigation, has declared that the £7bn takeover could lead to higher fuel prices in 121 locations across England, Scotland and Wales where both firms own forecourts.
In order to address these concerns, CD&R has offered to divest 87 of MFG’s petrol stations, which has now got the CMA green light.
The CMA has earlier said it as “minded to accept [the] proposals”, noting that the sale of some petrol stations would address the concerns in multiple areas.
Morrisons and CD&R have welcomed the announcement by the CMA.
“I am pleased the acquisition has cleared the final regulatory hurdle and we can now work closely with CD&R on the path ahead,” David Potts, Morrisons chief executive, said.
“Following hard on the heels of Covid, the cost of living crisis is another critical period for food retailers in the UK and there is important work ahead of us as we look to help customers and colleagues through these difficult economic times.”
Sir Terry Leahy, senior adviser to CD&R funds, said: “We welcome today’s announcement and the CMA’s thoughtful engagement throughout the process. We are delighted to be supporting Morrisons on the next stage of their journey and to working closely with the team to grow the business and provide quality, value, service and choice - shopping trip attributes that have long been the company’s tradition.”
