Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Birmingham Post
Birmingham Post
Business
Graeme Whitfield

Morrisons suitor hopes petrol station sale will ease takeover deal

The competition watchdog has said it could approve Morrisons' takeover by private equity firm Clayton, Dubilier & Rice (CD&R) after it proposed selling some its petrol stations.

CD&R, which also owns petrol station giant Motor Fuel Group (MFG), won a lengthy auction to buy the Bradford-based supermarket group last October.

MFG operates 921 petrol stations around the UK under a number of different brands, while Morrisons runs 339 petrol stations at its supermarkets.

Read more : go here for more retail news

The Competition and Markets Authority (CMA) launched an investigation into the £7bn takeover earlier this year and last month said it could pursue a deeper probe due to competition concerns. It had warned that the takeover of Morrisons could lead to higher fuel prices in 121 locations across the UK.

It said MFG and Morrisons both have forecourts in these locations and would face "limited competition" from other players following the merger.

On Thursday, the CMA said it received a proposal last week from CD&R which would see it sell some of its petrol stations in order to push the takeover through.

"The CMA considers that there are reasonable grounds for believing that the undertakings offered by CD&R, or a modified version of them, might be accepted by the CMA under the enterprise act 2002," the regulator said in a statement.

The watchdog did not disclose how many forecourts would be sold as part of the proposal.

Earlier this week, Morrisons warned that profits could take a hit as a result of the cost of living crisis and disruption caused by the Russian invasion of Ukraine.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.