Issa Brothers given green light for £6.8bn Asda takeover
In October, the brothers alongside private equity backer TDR Capital agreed to buy the grocery chain in a £6.8bn deal from Walmart
The Competition and Markets Authority (CMA) has accepted the Issa Brothers offer to sell 27 of their 395 EG Group petrol filling stations in a bid to close their £6.8bn takeover of Asda.
In April, the competition watchdog launched an investigation into the deal after it was feared that the takeover could lead to higher prices in petrol for consumers.
Now the body has accepted the terms of the pair’s offer to sell 27 of Asda’s petrol sites – which they acquired in a separate £750m deal.
It was revealed in the CMA’s offical terms of undertaking the brothers must now choose a purchaser for the assets, which the authority has to approve.
The CMA said: “The CMA considers that the undertakings given below by the Issa Brothers and TDR are appropriate to remedy, mitigate or prevent the substantial lessening of competition, or any adverse effect which has or may have resulted from the transaction, or may be expected to result from it, as specified in the decision.”
In October 2020, the brothers alongside private equity backer TDR Capital agreed to buy the grocery chain in a £6.8bn deal from Walmart.
Retail Sector has contacted TDR Capital for a comment.
