CMA to investigate billionaire Issa brothers’ takeover of Asda
Category: #business  By Saipriya Iyer  Date: 2020-12-10
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CMA to investigate billionaire Issa brothers’ takeover of Asda

The Competition and Markets Authority, UK, has reportedly ordered the investigation of Asda’s acquisition by Mohsin and Zuber Issa, the billionaire Blackburn brothers. The supermarket giant was reportedly purchased in October by Issa’s EG Group and TDR Capital, Issa’s private equity partners, from its U.S. owners Walmart in a deal amounting to nearly £6.8 billion. Now, the CMA has formally initiated its phase one investigation into Asda’s acquisition after the transaction was referred to it by the European Commission.

According to an Issa brothers and TDR Capital spokesperson, as expected, the CMA has begun a Phase One investigation into the takeover of Asda after receiving a referral from the European Commission. The partnership is looking ahead towards working constructively with the CMA for addressing any questions that they may ask, added the spokesperson.

As per sources, the Competition and Markets Authority will examine whether the takeover will lead to a considerable lessening of competition, especially in the petrol forecourt market. For the deal, Issa brothers and TDR formed an acquisition vehicle called the Bellis Acquisition Company.

The CMA has a deadline of February 18 for arriving at a decision on the first stage of probe and whether to mount a lengthy and full-blown investigation into the matter. The regulator has also set a deadline of December 22 for comments from interested parties.

The transaction is not likely to encounter the similar fate as the failed attempt by Sainsbury’s for the purchase of Asda, which was blocked by the regulator last year, cite sources. However, after having listed decreased competition in fuel retailing among its concerns when it rejected the Sainsbury’s tie-up, it is certain that the regulator might order Issa brothers to divest few of their EG Group petrol forecourt sites.

It is anticipated that CMA will require the disposal of a handful of sites, expected to be between 10 and 15.

Source credit: https://www.lancs.live/news/lancashire-news/blackburn-billionaire-issa-brothers-asda-19421557

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About Author

Saipriya Iyer

Saipriya Iyer    

Saipriya Iyer currently works as a content developer for GroundAlerts. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had previous experience of 3 years under her belt, she has dabbled with website ...

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