Plans by the billionaire Issa brothers to sell almost 30 petrol stations to avoid a further probe into their £6.8bn deal to buy Asda has been accepted.
The Lancashire-based brothers have now been cleared by the Competitions and Markets Authority (CMA) to find a buyer for the 27 EG Group sites, BusinessLive reports.
The decision comes after a consultation was launched in May by the competitions watchdog after the brothers, along with their private equity backer TDR Capital, offered to divest 27 EG Group petrol filling stations following concerns raised by the CMA in April.
The CMA has accepted undertakings in lieu of reference for the completed acquisition by Bellis Acquisition Company 3 Limited of Asda Group Limited. The full text of the decision will be available shortly.
The Issa brothers and TDR Capital announced the purchase the supermarket giant through jointly owned company Bellis in October 2020.
The brothers and private equity giant also own Blackburn-headquartered EG Group, which operates 395 petrol stations in the UK, while Asda owns 323.
The CMA said in April that many of Asda’s and EG’s petrol stations are located in the same parts of the UK and its investigation focused on these overlaps.
The watchdog added that it has found the deal raises local competition concerns in relation to the supply of road fuel in 36 areas across the UK and the supply of a specific type of fuel – called auto-LPG – in a further area.
In April it said it was concerned the merger could lead to higher prices for motorists in these locations.
Asda CEO and president, Roger Burnley, 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."
In a joint statement, TDR and the Issa Brothers added: "We welcome the CMA's announcement today marking the end of its review process and acceptance of our proposed undertakings.
"We can now push ahead with our exciting plans for Asda and look forward to working with the Asda management team to invest in the business to drive growth, including continuing to accelerate Asda's online offer, sourcing more food from UK farmers, and bringing enhanced convenience to customers."
The business now has sites in Europe, the United States and Australia and annual sales of around £18bn.
Previous American owners Walmart, which bought Asda in 1999 for £6.7bn, has retain a small stake in the business.
