The competition regulator has announced that it will look into Morrisons’ acquisition of the McColl’s chain.
Morrisons, which has a wholesale supply deal with McColl’s, acquired all of the latter’s 1,160 stores via a ‘pre-pack administration’. The Competition and Markets Authority (CMA) said its probe will consider whether the deal will result in a substantial lessening of competition.
Until then, the regulator has issued an initial enforcement order, which means both chains will have to continue operating as previously, until such time as the investigation is completed. A failure to comply could result in a penalty of up to 5% of both domestic and international turnover.
A CMA spokesperson said: “We’re aware of the circumstances surrounding Morrisons buying McColl’s convenience stores. Now that the businesses have told us that they intend to submit the deal for our review, we will conduct our investigation as promptly as possible. Imposing an interim enforcement order is standard practice where a deal has already completed — but we’ve worked closely with Morrisons to ensure that it can provide the support that McColl’s needs to continue to operate during our investigation.”
NAM Implications:
- Give with one hand, take back…
- i.e. either way, delay and uncertainty…
- …in uncertain times.
- Meanwhile, suppliers revert to short term strategies…
