CMA finds CD&R’s acquisition of Morrisons could lead to higher fuel prices in 121 locations across the country where both firms own forecourts
In January, the Competition and Markets Authority (CMA) opened its investigation into Clayton, Dubilier & Rice Holdings LLC’s (CD&R) £7.1 billion purchase of Wm Morrisons Supermarkets Ltd (Morrisons).
CD&R is the owner of the Motor Fuel Group (MFG), the largest independent operator of petrol stations in the United Kingdom. MFG operates 921 petrol stations across England, Scotland and Wales under a number of different brands, such as Esso, BP, Shell, Texaco, Jet and Murco. While Morrisons is predominantly a groceries retailer, it operates 339 petrol stations, the vast majority of which are located at its supermarkets across the UK.
Following its Phase 1 investigation into the merger, the CMA has found that the deal raises competition concerns in relation to the supply of petrol and diesel in 121 local areas across England, Scotland and Wales. These are all areas in which MFG and Morrisons both have petrol forecourts and would face only limited competition after the merger, meaning that the deal could lead to an increase in prices.
Colin Raftery, Senior Director of Mergers at the CMA, said:
CD&R has 5 working days to offer proposals to the CMA to address the competition concerns identified. The CMA would then have a further 5 working days to consider whether to accept these in principle instead of referring the case to a Phase 2 investigation.
For more information, visit the CD&R / Morrisons merger inquiry page.