CMA Investigates ASDA Acquisition

The CMA has announced it is launching an investigation into the acquisition of ASDA by the Issa briothers.

The billionaire Issa brothers are Mohsin and Zuber Issa from Blackburn, who own the petrol station retail business EG Group, which operates nearly 6,000 petrol filling stations in the UK and across Europe.  Along with private equity partners TDR Capital, the brothers bought ASDA from Walmart in October of this year, in a deal worth £6.8 billion.

The brothers have confirmed their intention to retain ASDA's Leeds head office and advised that they intend to expand its convenience and online operations.

The European Commission referred the deal to the CMA, which will seek to determine if the acquisition will lead to a "substantial lessening of competition", with a particular focus on the petrol forecourt sector.

A spokesman for the Issa brothers and TDR Capital said."As we expected, the CMA have launched a phase one investigation into the acquisition of Asda following a referral from the European Commission," 

"We are looking forward to working constructively with the CMA to address any questions they may have."

The initial stage of the investigation will end on the 18th February 2021 and interested parties are requested to comment by 22nd December 2020.

Source : Insight DIY Team

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