Wed, 16 Jun 2021 | DIVISION SALE
The UK competition regulator has accepted an offer from prospective new owners of Asda to sell 27 petrol stations and satisfy concerns that the sale of the business could lead to higher prices.
A deal to purchase the supermarket chain was agreed between Mohsin and Zuber Issa and private equity backer TDR Capital in October 2020. However, the Issa brothers have subsequently been unable to work directly with Asda after competition regulators expressed concerns that the deal could lead to higher petrol prices for drivers across 36 locations around the country.
To bypass the issue, the Issa brothers offered a deal in May that they said would see them sell off 27 of their current petrol forecourts. This deal has now been officially accepted by the Competition and Markets Authority (CMA) so the new owners can now begin selecting a buyer to purchase the forecourt sites.
Commenting on the news, Asda chief executive and president Roger Burnley stated that it welcomed the acceptance of the proposal and would now begin its search for the right buyers or buyers for the petrol stations.
He said: "We welcome today’s announcement from the CMA, which means we can now fully embark on the next stage of our journey under new ownership and work with Mohsin, Zuber and TDR to build an even stronger Asda that gives our customers outstanding choice, value and service in our stores and online."
TDR and Issa brothers added in a joint statement: "We welcome the CMA’s announcement today marking the end of its review process and acceptance of our proposed undertakings."
EG Group, the forecourt giant owned by the Issa brothers, operates 395 petrol stations in total, 323 of which are owned by Asda.
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