Higher prices warning over Asda's £600m deal to buy Co-op's petrol stations
14.03.2023 - 14:03
/ manchestereveningnews.co.uk
Drivers could face higher prices or less choice as a result of Asda's £600m deal to buy 132 petrol stations from the Co-op, the Competition and Markets Authority (CMA) was warned.
The judgement comes after an official inquiry was launched into the deal in January after the transaction was completed towards the end of last year and saw 2,300 workers move over to the supermarket giant.
In August 2022, the Co-op first revealed plans to sell its petrol stations and attached convenience stores in a bid to bolster its finances.
READ MORE: Click here to sign up to the BusinessLive North West newsletter
The Co-op said proceeds from the sale will be reinvested into its core convenience shops, pricing, stores operations and reducing its debt burden.
In October, Asda said the CMA had already issued an initial enforcement order, meaning the Co-op sites must remain separate until any probe is completed. At the time, the supermarket giant said the process is likely to "take until mid-2023".
Asda is owned by the Lancashire-based billionaire Issa brothers and private equity firm TDR Capital.
A CMA statement said: "The CMA’s investigation focused on a number of local areas in which Asda and the Co-op sites that it acquired compete to provide fuel or groceries to customers.
"The CMA found that the deal raises competition concerns in 13 locations across the UK, in each of which the merging businesses currently compete for customers and would not face sufficient competition after the merger. The deal could therefore lead to consumers and businesses in these areas facing higher prices or lower quality services when shopping or buying fuel.
"Asda told the CMA that competition concerns would not arise in these areas because the merger