MFG’s takeover of MRH is expected to be completed later this month after it passed a significant regulatory hurdle.
On June 5 the deal was referred to the UK Competition and Markets Authority (CMA) by the European Commission, and this means that, in accordance with the contracts exchanged between MFG investors, Clayton, Dubilier & Rice (CD&R), and MRH investors, Lone Star, the transaction will now complete within 15 days.
The companies’ directors have informed employees that they therefore expect the deal will be completed on or around 21 June.
The deal involves the UK’s largest service station operator MRH, being acquired by the second biggest, MFG, for £1.2bn.
It will create the UK’s number one operator by number of sites and number two by volume.
MFG and MRH together will operate more than 900 sites, which are predominantly company-owned and franchisee-operated, and manage third-party fuel, convenience, and foodservice brands.
They include fuel brands BP, Esso, Jet, Murco, Shell and Texaco and retail brands Budgens, Costa Coffee, Greggs, Spar and Subway, as well as the MRH-owned brand, Hursts. On a combined basis, MFG and MRH sold approximately 3.6 billion litres of fuel in 2017.
Alasdair Locke, chairman of MFG, will remain chairman of the combined business. Sir Terry Leahy, a senior advisor to CD&R’s funds and former chief executive of Tesco, will continue to serve on the board of directors and chair its executive committee.