In January, the Competition and Markets Authority (CMA) opened
its investigation into Clayton, Dubilier & Rice Holdings
LLC’s (CD&R) £7.1 billion purchase of Wm Morrisons
Supermarkets Ltd (Morrisons).
CD&R is the owner of the Motor Fuel Group (MFG), the largest
independent operator of petrol stations in the United Kingdom.
MFG operates 921 petrol stations across England, Scotland and
Wales under a number of different brands, such as Esso, BP,
Shell, Texaco, Jet and Murco. While Morrisons is predominantly a
groceries retailer, it operates 339 petrol stations, the vast
majority of which are located at its supermarkets across the UK.
Following its Phase 1 investigation into the merger, the CMA has
found that the deal raises competition concerns in relation to
the supply of petrol and diesel in 121 local areas across
England, Scotland and Wales. These are all areas in which MFG and
Morrisons both have petrol forecourts and would face only limited
competition after the merger, meaning that the deal could lead to
an increase in prices.
Colin Raftery, Senior Director of Mergers at the CMA, said:
Prices for petrol and diesel have recently hit record highs,
which makes it even more important that we don’t allow a lack of
competition at the pump to make the situation worse.
We’re concerned that this deal could lead to higher prices for
motorists in some parts of the country. But if CD&R and
Morrisons are able to address these concerns, then we won’t need
to move on to an in-depth investigation of the merger.
CD&R has 5 working days to offer proposals to the CMA to
address the competition concerns identified. The CMA would then
have a further 5 working days to consider whether to accept these
in principle instead of referring the case to a Phase 2
investigation.
For more information, visit the CD&R / Morrisons merger
inquiry page.
Notes to Editors
- Following a Phase 1 review, the CMA has found that CD&R’s
acquisition of Morrisons gives rise to a realistic prospect of
substantial lessening of competition (SLC) in 121 areas across
England, Scotland and Wales.
- The CMA served an initial enforcement order on 26 October
2021 requiring the companies to operate independently, as they
did before the purchase. The CMA has granted 7 specific
derogations on the enforcement order since then, and the order
remains in force. Details of the order can be found on the
CD&R / Morrisons
merger inquiry page.
