The Competition and Markets Authority has launched an investigation into the Issa brothers and private equity firm TDR’s planned £6.8bn acquisition of Asda.
The competition watchdog said it has launched phase 1 of the investigation following the European Commission’s decision to refer the case to the UK.
Walmart agreed the sale of Asda to TDR Capital and the Issa Brothers in October. The two parties have formed a merger – Bellis Acquisition Company – for the Asda takeover, which is expected to complete in the first half of 2021.
The CMA said it is considering whether the transaction could create “a substantial lessening of competition” in the UK market for goods and services.
The Issa brothers currently operate the EG Group which has a chain of 6,000 petrol stations and convenience stores.
The CMA is inviting comments from any interested party on the impact that the merger could have on completion in the UK. The watchdog has a deadline of 18 February 2021 to announce its decision.
Responding to the launch of the investigation, a spokesperson for the Issa brothers and TDR Capital said: “As we expected, the CMA have launched a Phase 1 investigation into the acquisition of Asda following a referral from the European Commission today. We are looking forward to working constructively with the CMA to address any questions they may have.”
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