Issa brothers’ Asda takeover probed by competition regulator
The Competition and Markets Authority (CMA) is investigating the takeover of Leeds-headquartered Asda by by billionaire Blackburn brothers Mohsin and Zuber Issa.
The brothers’ EG Group along with private equity partners TDR Capital bought the supermarket chain from US owners Walmart in October in a deal worth £6.8bn.
The CMA began the probe after the European Commission referred the deal. Reported by the BBC this morning, the brothers have said the move was “expected”.
The CMA says it will examine whether the acquisition will lead to a “substantial lessening of competition”, especially in the petrol forecourt market.
The Issa brothers’ EG Group, formerly known as Euro-Garages, has nearly 6,000 petrol stations across the UK and Europe and about 44,000 staff.
The brothers and TDR – which established a takeover vehicle called Bellis Acquisition Company for the deal – are understood to have requested the European Commission refer the deal to the CMA for review.
The regulator has until 18 February to make a decision on phase one of its investigation and whether to mount a full-scale probe.
It has published a deadline of 22 December for interested parties to comment.
The Issas have committed to keeping Asda’s headquarters in Leeds and said they would be investing to grow its convenience and online operation.
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