The Competition and Markets Authority (CMA) has accepted an offer from Asda to sell off 13 sites in order to avoid a Phase 2 investigation into its acquisition of 132 retail fuel sites from The Co-op Group.
The deal was first announced in August 2022, completed in October 2022, and includes 129 existing sites and three development sites, for a cash value of £438m plus lease liabilities of £173m.
In March 2023, the CMA raised concerns over 13 sites as part of its investigation into the deal, leading to Asda offering to sell them to satisfy concerns. According to the CMA, the majority of the concerns surrounded the price of petrol, stating that “there was a risk that customers could face higher prices or worse services in a small number of areas where Asda would face insufficient competition in either groceries or fuel after the deal goes through”.
However, after considering Asda’s offer to sell the sites, the CMA deemed it to be a “reasonable and practicable” solution to the concerns and will not refer the merger to a more in-depth, Phase 2 investigation. The CMA’s inquiry into the deal remains open while the sites are sold.
The 13 sites that are to be divested include 11 retail fuel sites and 3 medium size stores, two of which are on the same site. They are: Barnard Castle; Calcutt, Caledonian Road; Gnosall (Station Road); Lauder; Minsterley; Oakdale (Ripon Road),Harrogate; Rochester; Stonehaven (Kirkton Road); Weycock Cross in Barry and Earlston in Scotland. The Earlston site also raised concerns in relation to groceries, along with sites in St Columb Minor (Henver Road), and East Peckham.
When the deal was completed in October 2022, Mohsin Issa, co-owner of Asda, said it was the “next step on a journey to creating a new and exciting part of our Asda business”.
Earlier this week, Asda announced the acquisition of EG Group’s UK and Ireland business as part of its focus on the convenience channel.
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