U.K. Regulator Minded to Accept Issa Brothers, TDR Undertakings Over Asda Takeover
By Ian Walker
The U.K. Competition and Markets Authority said Wednesday that
undertakings provided by the Issa brothers and TDR Capital LLP
could be enough to satisfy its concerns over their 6.8 billion
pound ($9.44 billion) acquisition of U.K. grocer Asda Group.
The regulator said on April 20 that it was concerned that the
acquisition could lead to higher petrol prices in some parts of the
country. Specifically it said the raised local competition concerns
in the supply of road fuel in 36 areas across the U.K., and the
supply of auto-LPG fuel in another area.
The CMA said Wednesday that the brothers have offered to sell 27
EG Group Ltd. petrol filling stations.
The brothers and TDR said that they have been "comforted by the
significant interest" received from potential buyers, but couldn't
provide any detailed information on specific sites due to the
ongoing CMA investigation.
"Over the coming months, we are confident that we will be able
to agree a sale to suitable operators to take over all identified
sites," they said in an emailed statement.
The CMA has 40 days to consider the undertakings offered before
making a final decision on the deal.
On Oct. 3, Walmart Inc. agreed to sell Asda to TDR Capital, a
Europe-focused buyout firm, and U.K.-based entrepreneur brothers
Mohsin and Zuber Issa.
Write to Ian Walker at firstname.lastname@example.org
(END) Dow Jones Newswires
May 05, 2021 06:46 ET (10:46 GMT)
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