// CMA accepts an offer from Issa bros to sell 27 petrol stations to push their £6.8bn Asda takeover deal across the line
// The CMA confirmed it “officially accepted” their proposal to sell 27 of their current forecourts to allay competition concerns
// This means an Interim Enforcement Order will now be lifted, clearing the way for the takeover to push ahead
The UK’s peak competition regulator has accepted an offer from Asda’s prospective new owners to sell 27 petrol stations to push their takeover deal across the line.
In October, the billionaire Issa brothers and private equity backer TDR Capital agreed a £6.8 billion deal to buy the supermarket chain from Walmart.
While that deal was completed earlier this year, it still needed approval from the CMA after it raised concerns in April that the takeover could lead to higher petrol prices for motorists in 36 locations.
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In response, last month the Issa brothers offered to sell 27 of their current forecourts as part of a divestment deal to allay competition concerns.
Today, the CMA confirmed it has now “officially accepted” their proposal.
This means an Interim Enforcement Order imposed by the CMA will now be lifted, clearing the way for the Issa brothers and TDR Capital to now with the Asda management team to push ahead with the takeover and deliver new a new strategy for the Big 4 retailer.
Despite this, the new Asda owners must still select a buyer, or buyers, to purchase the forecourt sites, which in turn must be approved by the CMA again.
In a joint statement, TDR Capital and the Issa Brothers said: “We welcome the CMA’s announcement today marking the end of its review process and acceptance of our proposed undertakings.
“We can now push ahead with our exciting plans for Asda and look forward to working with the Asda management team to invest in the business to drive growth, including continuing to accelerate Asda’s online offer, sourcing more food from UK farmers, and bringing enhanced convenience to customers.”
Asda chief executive Roger Burnley, said: “We welcome today’s announcement from the CMA, which means we can now fully embark on the next stage of our journey under new ownership and work with Mohsin, Zuber and TDR to build an even stronger Asda that gives our customers outstanding choice, value and service in our stores and online.”
EG Group, the forecourt giant owned by the Issa brothers, operates 395 petrol stations, while Asda owns 323 sites.
with PA Wires
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