The CMA Competition and Markets Authority believes a £190m deal which would see Morrisons buying stores from McColl’s Retail Group wouldn’t harm the vast majority of shoppers or other businesses.
However, it has raised competition concerns in 35 areas, which have been accepted by both companies, and they have engaged with the CMA in discussing potential remedies.
Morrisons has now offered to divest 28 McColl’s stores to a purchaser or purchasers to be approved by CMA. This includes 26 stores, including in Lincoln.
The CMA is now consulting on the proposals – known as undertakings – for the sale of these stores. If the CMA accepts the proposals, the deal would be cleared to proceed.
Sorcha O’Carroll, CMA Senior Director of Mergers, said: “Our preliminary view is that the sale of these stores will preserve competition in these local areas and prevent consumers from losing out due to this deal, at a time when shoppers are already facing rising prices.
“If, after reviewing the responses to our consultation, we conclude that the competition issues have been addressed, the deal will be cleared.”
McColl’s operates convenience newsagent shops, with over 1,100 stores across England, Scotland, and Wales, while Morrisons (owned by parent company Clayton, Dubilier & Rice) has around 500 grocery stores in the UK. CD&R is also the parent company of the Motor Fuel Group, which owns more than 800 convenience stores, the vast majority of which are attached to its petrol stations.
