The billionaire brothers behind Asda's £6.8billion takeover have been told they will have to sell 27 fuel stations for the takeover to go ahead.
The competition watchdog said the Issa brothers - which own the Euro Garages business - would have close part of their network for the transaction to be reconsidered.
The warning from the Competition and Markets Authority (CMA) comes amid concerns Bellis’ purchase of Asda could lead to higher petrol prices in some parts of the country.
The CMA previously said these overlaps would financially impact consumers and could leave them worse off with higher petrol and diesel prices.
The CMA first launched an investigation into the Asda takeover in December, after the deal was given the go-ahead by Walmart.
Its job was to investigate what impact the merger could have on competition and prices in the UK.
Under the new ownership, the self-made billionaires will join TDR to acquire a majority stake in Britain's big four grocer.
Bosses previously said the sale will include a £1billion cash injection for Asda, a greater focus on British produce and a long-term pledge to deliver more "competitive prices" for fuel customers.
Judith McKenna, chief executive officer of Walmart International said: "We are delighted to be able to announce this deal today, which we believe creates the right ownership structure for Asda, building on its 71 year-heritage, whilst bringing a new entrepreneurial flair, not only to Asda, but also to UK retailing."
The Issa brothers, who started Euro Garages from a single forecourt in Greater Manchester, said they were "very proud to be investing in Asda", describing it as "an iconic British business that we have admired for many years".
"After a successful period as part of Walmart we are looking forward to helping Asda build a differentiated business that will continue to serve customers brilliantly in communities across the UK," a statement said.
Gary Lindsay at investment firm TDR Capital said: "We are proud to be investing alongside Mohsin and Zuber, who have built EG Group into a global convenience retailer and will now bring that experience to bear at Asda."
