Morrisons owner Clayton, Dubilier & Rice Holdings (CD&R) has agreed to sell 87 MFG petrol stations to address concerns raised by the Competition and Markets Authority (CMA).
CD&R also owns Motor Fuel Group (MFG), the largest independent operator of petrol stations in the UK with 921 forecourts. Morrisons operates 339 sites.
The CMA today said it proposes to accept the offer from the private equity firm.
The watchdog, following its initial investigation, has declared that the £7bn takeover could lead to higher fuel prices in 121 locations across England, Scotland and Wales where both firms own forecourts.
In order to address these concerns, CD&R has now offered to divest 87 of MFG’s petrol stations to be approved by the CMA.
The CMA said it is “minded to accept these proposals”, noting that the sale of some petrol stations would address the concerns in multiple areas.
“The sale of these petrol stations will preserve competition and prevent motorists from losing out due to this deal, which is particularly important when prices have recently hit record highs,” Colin Raftery, senior director of mergers at the CMA, said.
The CMA is now consulting on the proposals – known as undertakings – for the sale of these petrol stations. If the CMA accepts the proposals, the deal would be cleared to proceed.
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