The Competition and Markets Authority (CMA) has launched an official enquiry into Asda’s completed £600 million deal to acquire 132 grocery retail sites, with attached petrol stations, from the Co-op.
A decision on the first phase of the inquiry is expected by 14 March, with the organisation now inviting comments on the transaction until then.
The deal, which was first completed in October last year, includes 129 convenience stores of between 1,500 and 3,000sq ft, with attached petrol stations, and three development sites.
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The move also saw around 2,300 employees move over to the Big 4 grocer, following consultations with trade union Usdaw.
According to the CMA, it is considering whether the “creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”
However, reacting to the inquiry an Asda spokesperson said: “The acquisition of these sites is part of our long-term strategy to build a convenience business and bring Asda’s great value in fuel and groceries to more customers and communities throughout the UK.
“We referred the acquisition to the CMA when it completed last October and look forward to working collaboratively with them in the coming months.”
The move follows Asda’s £6.8 billion takeover by the billionaire Issa brothers and private equity backers TDR Capital, who also own the EG Group forecourt giant.
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Asda have taken over the co op on Putney vale. The next nearest shop to us is already ASDA so now we only have a choice between ASDA and ASDA or making a considerable journey. This doesn’t seem fair and ought to be illegal.