Final hurdle cleared for Morrisons takeover deal

An offer by the buyer of supermarket chain, Morrisons, to sell 87 petrol stations has been accepted by the Competition and Markets Authority (CMA), clearing the last hurdle in the path of the £7bn acquisition.

The CMA had been investigating Clayton, Dubilier & Rice Holdings’ (CD&R) purchase of Bradford-headquartered Morrisons.

CD&R owns Motor Fuel Group (MFG), the largest independent operator of petrol stations in the UK, with 921 sites, while Morrisons operates 339 petrol stations.

The CMA’s phase one investigation focused on local areas where both businesses operated petrol stations.

It concluded the deal raised competition concerns in relation to the supply of petrol and diesel road fuel in 121 areas across England, Scotland and Wales – so could inflict higher prices on motorists in these locations.

In response, CD&R offered to sell off 87 of MFG’s petrol stations. The regulator has now said: “The CMA considers the undertakings given by CD&R are appropriate to remedy, mitigate or prevent the substantial lessening of competition, or any adverse effect which may have resulted from the transaction.”

Morrisons welcomed the confirmation that the CMA has accepted the undertakings given by CD&R.

David Potts, Morrisons’ CEO, said: “I am pleased the acquisition has cleared the final regulatory hurdle and we can now work closely with CD&R on the path ahead.

“Following hard on the heels of Covid, the cost of living crisis is another critical period for food retailers in the UK and there is important work ahead of us as we look to help customers and colleagues through these difficult economic times.”

Sir Terry Leahy, senior adviser to CD&R funds, added: “We welcome today’s announcement and the CMA’s thoughtful engagement throughout the process.

“We are delighted to be supporting Morrisons on the next stage of their journey and to be working closely with the team to grow the business and provide quality, value, service and choice – shopping trip attributes that have long been the company’s tradition.”