Takeover of Morrisons to complete as UK approves petrol stations sale

The competition watchdog has confirmed that Wm Morrison Supermarkets PLC can complete its £7 billion takeover by a US private equity firm after agreeing to the new owner's plan to sell dozens of petrol stations.

Clayton, Dubilier & Rice LLC won a lengthy auction to buy the Bradford-based grocer last year in a deal worth around £7 billion. The investment giant also owns Motor Fuel Group Ltd, the UK's largest independent petrol station operator, which runs 921 forecourts across the country.

Meanwhile, Morrisons runs 339 petrol stations across England, Scotland and Wales. In January, the Competition and Markets Authority opened an investigation into the move as it raised concerns that the deal could lead to higher petrol prices for some customers.

But the CMA said it has now formally accepted an offer from Clayton, Dubilier & Rice to sell 87 of its Motor Fuel Group-run forecourts in areas of concern in order to push the takeover through. Last month, the regulator said it was considering the offer and was ‘minded to accept’ the move.

It added that the proposal appeared ‘to be suitable to restore the loss of competition brought about by the deal across each of the 121 local areas in which the concerns were identified’. The CMA said that, while the number of sites proposed for sale is lower than the number of areas previously highlighted, the sale of some petrol stations will address concerns in multiple areas.

On Thursday, the watchdog confirmed that Clayton, Dubilier & Rice will need to sell 87 sites to purchasers it has approved. Last year, Asda Stores Ltd buyers the Issa brothers and TDR Capital LLP agreed to sell 27 petrol stations in order to secure their takeover of the supermarket chain following similar competition concerns by the CMA.

By Henry Saker-Clark, PA Deputy Business Editor

source: PA

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