The Competition and Markets Authority (CMA) confirmed today that it had officially started investigating whether Morrisons’ acquisition of convenience store chain McColl’s would lead to a substantial lessening of competition in the sector.
After the rescue of 1,160 McColl’s stores was completed in early May, the competition regulator announced weeks later that it would look into the deal. The CMA issued an initial enforcement order at the end of May, which meant both chains had to continue operating as previously until the investigation was completed.
The regulator announced today that it had set a deadline of 8 September for its initial ‘phase 1’ decision.
McColl’s went into administration with debts of just under £170m. Prior to the rescue deal, Morrisons had a wholesale supply deal with the convenience chain. McColl’s had also converted hundreds of its stores to the Morrisons Daily format.
NAM Implications:
- A decision deadline dilutes some of the uncertainty.
- But key that the deal be fully approved to allow suppliers…
- …to move off short-term mode.
