Asda takeover may force billionaire brothers to sell 50 petrol stations
The mergers watchdog has warned that the £6.8bn takeover of Asda by the billionaire Issa brothers could thrust prices up at the pump and demanded further assurances to avert a total-blown investigation.
The Level of competition and Marketplaces Authority’s probe discovered 36 regions throughout the United kingdom where by the tie-up could lead to greater prices for motorists.
EG Group, the forecourt large owned by Mohsin and Zuber Issa, operates 395 petrol stations, even though Asda owns 323 sites. The brothers are to merge Asda’s sites with their existing forecourt empire in a individual £750m offer as element of their takeover of the grocery store.
The CMA only named one Asda superstore in Aberdeen as problematic.
Other regions where by the two firms overlap, in accordance to details from Altus, contain: Birmingham, with two EG sites and six Asda sites Leeds, with four EG sites and five Asda sites Liverpool, with a few EG sites and six Asda sites and Manchester, with 7 EG sites and 8 Asda sites.
Level of competition attorneys approximated that the new homeowners of the grocery store chain would have to provide among forty and 50 sites to get the green light from the regulator.
Marketplace veteran Gerald Ronson, who pioneered self-support petrol stations in the nineteen sixties, expressed an curiosity in obtaining some of the sites to increase to his existing 265 areas.
“We’re in the market to get the appropriate sites. If they have sites that they want to provide we would be happy to have a appear at them. We never have any personal debt and we have sizeable dollars. We’re purchasers,” he explained.
