Morrisons’ recent acquisition of retail group McColl’s has raised concerns over a small number of local areas facing more competition due to the takeover.
As a result, the grocer has been struck by an investigation by trade body the Competitions and Markets Authority (CMA) into findings that the acquisition saw potential competition concerns in 35 sites, which it called “a small number of local areas”.
Although Morrisons welcomed the investigation, the CMA said the proposed acquisition by Morrisons of symbol group’s 1,100 convenience stores “would not harm the vast majority of shoppers or other businesses.”
The supermarket giant said it will now work closely with the CMA on its proposed remedies in these 35 local areas and “look forward to a swift conclusion of the process.”
“As the cost of living soars, it’s particularly important that shops are facing proper competition so that customers get the best prices possible when picking up essentials or doing the weekly shop,” CMA senior director of mergers, Sorcha O’Carroll said.
“While the vast majority of shoppers and other businesses won’t lose out, we’re concerned that the deal could lead to higher prices for people in some areas. If Morrisons and McColl’s can address these concerns, then we won’t need to move on to an in-depth investigation.
“In the meantime, we’re working closely with Morrisons to ensure that it can provide the support that McColl’s needs to continue to operate during our investigation.”
