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The merger between Asda and petrol forecourt business EG Group will threaten the UK’s food supply, fuel prices and 100,000 jobs, the GMG union told the trade secretary Kemi Badenoch in a letter.
In the letter, the union pointed out that Asda’s debts are already thought to be more than £4.7bn and that any potential merger with EG Group could add more than £7bn to the total.
The £7bn EG debt is due to be refinanced in 2025 when interest rates are likely to be significantly higher, which will further place the ‘big four’ supermarket in a perilous financial position, the union warned.
As a result, GMB has called on the business secretary to ensure the merger is fully investigated by the Competition and Markets Authority (CMA).
Nadine Houghton, GMB national officer, said: “The potential Asda and EG Group merger is likely to saddle the company with a massive, unsustainable debt burden. Allowing it to go ahead would be deeply irresponsible.
“Firstly, it risks the jobs of more than 100,000 employees. As one of the largest private sector employers in the UK, the future sustainability of the business is a matter of national, public interest.”
She added: “Secondly, it would place the future of the UK’s food supply at risk by loading even greater debt onto one of the UK’s Big four Supermarkets.
“Finally, it will have a chilling effect on competition for fuel prices by creating a ‘super retailer’ of more than 700 petrol stations. This merger is not in the best interests of ASDA as a business and certainly not in the best interests of the public and consumers.”
