Regulator begins investigation into Asda’s purchase of petrol forecourt estate

Britain’s competition regulator said on Tuesday (17) that it has begun investigating British supermarket group Asda Stores’ purchase of Co-Operative Group’s petrol forecourt estate.

The Competition and Markets Authority (CMA) said it had until March 14 to make its phase 1 decision on whether the deal will reduce competition in the UK.

Asda is planning to open 300 convenience stores by the end of 2026, aiming to become a player in the smaller shop market to help drive growth, and creating thousands of new jobs in the process.

The supermarket group had agreed to buy Arthur Foodstores Ltd, which comprises of 129 sites, from Co-Operative for 600 million pounds in August last year.

Responding to the investigation, a spokesperson for Asda said that the acquisition of these sites is part of our long-term strategy to build a convenience business and bring Asda’s great value in fuel and groceries to more customers and communities throughout the UK.

“We referred the acquisition to the CMA when it completed last October and look forward to working collaboratively with them in the coming months.”

The acquisition includes 129 convenience stores of between 1,500 and 3,000 square feet, with attached petrol stations, and three development sites. Circa 2,300 colleagues currently employed by the Co-op will join Asda under TUPE transfer in the coming months following consultation with USDAW, Asda said.

Mohsin Issa, said in August last year: “We have always been clear in our ambition to grow Asda and are hugely excited to create this new and distinct part of our business, giving us the opportunity to bring Asda value in fuel and groceries to even more customers and communities across the UK.”