Asda has offered to dispose of 13 petrol stations with attached grocery stores to secure regulatory clearance for its £438m acquisition of 132 forecourt sites from the Co-op.
Two weeks ago, the Competition and Markets Authority (CMA) raised concerns that the deal, which was completed last October, could lead to higher prices or less choice for consumers in several parts of the country.
The CMA’s investigation focused on a number of local areas in which Asda and the Co-op sites compete to provide fuel or groceries to consumers. The watchdog found that the deal raised 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 CMA ordered Asda to address its concerns to avoid an in-depth ‘Phase 2’ investigation.
Asda has now offered to sell the sites the regulator is concerned about.
“It considers there are reasonable grounds for believing that the offer, or a modified version of it, might be acceptable,” the CMA said. It has until 30 May to decide if it will accept Asda’s proposal.
An Asda spokesperson said: “We welcome the update from the CMA on our proposals and will continue to work collaboratively with them to address their concerns.”
Asda is currently expanding its presence in the convenience channel through its ‘On the Move’ forecourt stores developed with the EG Group and its own Express format, which launched before Christmas. The supermarket is planning to open 300 Asda Express stores by the end of 2026 in urban and residential locations.
NAM Implications:
- A no-brainer, no alternative decision…
- Asda rivals and suppliers should assume compliance.
- And plan accordingly…
- Their real focus should be on the other Asda deals in the pipeline.
