Asda has offered to sell 13 forecourt sites after the Competition and Markets Authority (CMA) concluded its £600m takeover of the Co-op’s forecourt business could lead to a reduction in competition in 13 local areas.
In January the CMA opened a preliminary investigation into the completed acquisition by Asda of Arthur Foodstores Limited, a company set up by Co-op to sell its 132 petrol forecourt sites and attached grocery stores.
The CMA’s investigation focused on a number of local areas in which Asda and the Co-op sites that it acquired compete to provide fuel or groceries to customers. The CMA found that the deal raises competition concerns in 13 locations across the UK, in each of which the merging businesses currently compete for customers and would not face sufficient competition after the merger.
It concluded this could lead to consumers and businesses in these areas facing higher prices or lower quality services when shopping or buying fuel.
Asda was given five working days to offer legally binding proposals to the CMA to address the competition concerns identified. The CMA now has five working days to consider whether the offer addresses its concerns, or if the case should be referred to an in-depth, Phase 2 investigation.
In a statement the CMA said there are reasonable grounds for believing that the undertakings offered, or a modified version of them, might be accepted.
The CMA revealed that one of the 13 locations, in Earlston, Scotland, raised competition concerns in relation to the supply of both petrol and groceries. The 10 other petrol stations that raised concerns are in Barnard Castle; Calcutt, Caledonian Road; Gnosall (Station Road); Lauder; Minsterley; Oakdale (Ripon Road), Harrogate; Rochester; Stonehaven (Kirkton Road); and Weycock Cross in Barry. The two further areas that raised concerns in relation to groceries are the Co-op mid-size stores in St Columb Minor (Henver Road), and East Peckham.
