Trade union GMB has stated Asda’s proposed merger will “raise the spectre of a private equity black hole on the UK high street.”
As a result, the merger would see the company combine its petrol and supermarket divisions.
However, fresh calls have been made from GMB to expand the powers of the Competition and Markets Authority (CMA).
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
The billionaire owners of Issa brothers are exploring a merger of the supermarket and their UK petrol forecourts business in a deal that would create a retail giant worth more than £10 billion.
The move would create a group with 581 supermarkets, 700 petrol forecourts and more than 100 convenience stores in a bid to refinance its current debt.
“This proposed merger raises the spectre of a private equity black hole on the UK high street,” GMB national officer Nadine Houghton said.
“More and more of our essential household goods – from food to fuel – are controlled by unaccountable private equity backers.”
“This merger isn’t in the interests of the 200,000 impacted workers, or the UK economy, or even consumes. It simply suits the debt refinancing arrangements of a private equity firm and their business partners.”
Houghton added: “GMB stands on the side of hard-working families in calling for the role of the CMA to be expanded – giving greater regulatory oversight in relation to private equity buyouts and ensuring greater protection of both consumers and workers.”
