Breaking news: Netto deal cleared by OFT

SUPERMARKET chain Asda’s acquisition of 194 Netto stores in the UK has been cleared by the Office of Fair Trading.

The OFT had asked Asda to sell Netto stores in 47 areas including finding buyers in 25 locations before the acquisition was completed.

Asda has now agreed deals with Morrisons, Iceland Foods and the Haldanes Group on those 25 stores.

As a result, the OFT said today it would not be referring Asda’s £778m acquisition of the Netto stores from the Dansk Supermarked group to the Competition Commission.

The acquisition represents a significant move by Asda into the small grocery store sector.

OFT chief economist Amelia Fletcher said: “‘We required these divestments to ensure that shoppers continue to benefit from competition in their local areas.

“Where upfront buyers were required, we carefully assessed the financial position and commitment of all prospective purchasers, before accepting the undertakings.”

Dansk was advised by Yorkshire law firm Walker Morris led by partners Ian Gilbert and Andrew Moody.