Issa brothers’ Asda takeover hits roadblock as watchdog probes petrol station competition concerns
The UK’s competition watchdog has launched an investigation into the acquisition of Asda by the Issa brothers and TDR Capital over concerns that it could drive up petrol prices.
The companies have said they will work with the Competition and Markets Authority (CMA) to find a resolution within the first stage of the probe.
The CMA this morning said the deal raises issues in relation to the supply of road fuel in 36 areas across the UK.
Issa brothers and TDR Capital also own EG Group, which operates 395 petrol stations in the UK, while Asda owns 323 sites.
The watchdog said it is concerned that the merger could lead to higher prices for motorists.
The companies have five days to address the competition concerns, while the CMA has a further five days to either accept or reject the proposals.
If the proposals are rejected, the CMA will refer the case to a more in-depth phase 2 investigation.
Joel Bamford, senior director of mergers, said: “Our job is to protect consumers by making sure there continues to be strong competition between petrol stations, which leads to lower prices at the pump.
“These are two key players in the market, and it’s important that we thoroughly analyse the deal to make sure that people don’t end up paying over the odds.”