// GMB warns potential merger of Asda with EG Group’s UK petrol stations could “threaten food supply, fuel prices and 100,000 jobs.”
// The union said allowing the merger to go ahead would be “deeply irresponsible”
A union representing workers at Asda has said a potential merger of the supermarket with EG Group’s UK petrol stations could “threaten food supply, fuel prices and 100,000 jobs.”
GMB Union wrote to Business Secretary Kemi Badenoch urging her to call in the Competition and Markers Authority (CMA) to fully investigate the merger.
The plan, which will merge Asda and EG Group‘s UK division, comes as part of the Issa Brother’s ongoing efforts to reduce EG Group’s £7bn debt burden.
However, the move comes with concerns that this could increase the supermarket groups’ existing debt, which currently stands at £4.7 billion, at a time when interest rates have risen sharply.
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In a letter to Badenoch sent this week, GMB warned that the £7bn EG debt is due to be refinanced in 2025 when interest rates are likely to be significantly higher, which could place Asda in a “perilous financial position.”
The letter explained that allowing the merger to go ahead “would be deeply irresponsible for several reasons.”
GMB national officer, Nadine Houghton explained: “Firstly, it risks the jobs of more than 100,000 employees. As one of the largest private sector employers in the UK, the future sustainability of the business is a matter of national, public interest.”
She said that this would also “place the future of the UK’s food supply chain at risk by loading even greater debt on to one of the UK’s Big 4 supermarkets,” and “have a chilling effect on competition for fuel prices by creating a ‘super retailer’ of more than 700 petrol stations.”
“GMB calls on the secretary of state to ensure the CMA investigates thoroughly – and that additional investigatory and enforcement powers are given with the Competition and Markets Bill now coming to the floor of the house,” Houghton added.
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4 Comments. Leave new
Unions say they worry about jobs but if EG went under the jobs could be gone , a take over by Asda would make it much more viable & less chance of failing
ASDA has far less staff in stores than they did have they bought out by Wal-mart in 1999 who outbidden Kingfisher at last minute then they wanted rid of it the 2020’s and proposed a merger with Sainsbury’s which may have turned out better for us workers. The ISSA Brothers should never have been allowed to take on so much debt in order to buy out ASDA with a private equity firm, then been allowed to buy Coopland’s bakery, now closing branches not because they are not doing well but because of billionaire brother’s debts. As someone who works in store nothing has improved since the Brothers took over our bonus has been cut now will be axed and was only small before we are under-staffed, overworked and under-paid.
Tesco have 600 petrol stations they would be the only one’s threatened and bigger means they could lower prices
Does the CMA not remember the name carillon, that went bust due to getting far to big for their boots. Asda is heading in the same direction.