Morrisons' McColl's store sale paves way for deal clearance

MccollS Retail

10/10/2022 11:15

LONDON, Oct 10 (Reuters) - British supermarket group
Morrisons' purchase of convenience retailer McColl's looks set
to be cleared after the competition regulator said it was likely
to accept an offer to sell 28 stores.
    Morrisons bought the 1,100 store McColl's for a reported 190
million pounds ($210 million) in May after it collapsed into
administration.    
    However, the Competition and Markets Authority (CMA)
launched an investigation into the deal in July.
    Following an initial probe, the watchdog found the deal
would not harm the vast majority of UK shoppers or other
businesses, but that it raised competition concerns in 35 areas.
    To address these concerns, Morrisons offered to divest 28
McColl's stores. The CMA said it was minded to accept these
proposals.
    "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," it said.
    The 500-store Morrisons has been owned by private equity
firm Clayton, Dubilier & Rice (CD&R) for a year.
    CD&R is also the parent company of the Motor Fuel Group,
which owns more than 800 convenience stores.
    Morrisons last month reported a halving of third-quarter
core earnings against the backdrop of a cost of living squeeze.
    It has also lost its place at Britain's fourth largest
grocer to discounter Aldi.
($1 = 0.9035 pounds)
 (Reporting by James Davey; Editing by Kirsten Donovan)
 ((james.davey@thomsonreuters.com))