The Competition and Markets Authority (CMA) has proposed to accept Morrisons offer to sell 28 McColl’s stores in a bid to address competition concerns.
In July, the CMA launched its ‘phase one’ investigation into Morrisons’ £190m rescue bid to takeover convenience chain McColl’s after it fell into administration, threatening 16,000 jobs and 1,100 stores from closure.
The investigation found that while the takeover would not harm most shoppers or other businesses, it did raise competition concerns in 35 areas.
To remedy this, Morrisons offered to divest 28 McColl’s stores which has now provisionally cleared the way of its takeover.
The CMA is currently consulting on the proposals which would see 26 McColl’s stores across England, including in areas such as Swindon, Lincoln and Brentwood sold, as well as one in Perth, Scotland and the final store in Newport, Wales.
“Our preliminary view is that the sale of these stores will preserve competition in these local areas and prevent consumers from losing out due to this deal, at a time when shoppers are already facing rising prices,” CMA senior director of mergers, Sorcha O’Carroll said.
“If, after reviewing the responses to our consultation, we conclude that the competition issues have been addressed, the deal will be cleared.”
