You are here: Home - Household Bills - News -

Morrisons merger ‘could lead to higher fuel prices’

0
Written by:
24/03/2022
The competition regulator has raised concerns over CD&R’s takeover of Morrisons, suggesting the deal “could lead to higher fuel prices for drivers in some parts of the country”.

American private equity firm Clayton, Dubilier & Rice made a winning £7.1bn auction bid for the British supermarket chain last year, following Morrisons’ initial agreement for a £6.3bn takeover by rival US firm, Fortress Investment Group.

But in January this year, the Competition and Markets Authority (CMA), opened an investigation into CD&R’s buyout of Britain’s fourth largest supermarket.

The US firm is the owner of the Motor Fuel Group (MFG) which is the largest independent operator of petrol stations in the UK.

In total, it runs 921 petrol stations across England, Scotland and Wales under brands including Esso, BP, Shell, Texaco, Jet and Murco.

Morrisons supermarket also operates 339 petrol stations across the UK and as part of the first phase of the CMA’s investigation, it said the deal “raises competition concerns in relation to the supply of petrol and diesel in 121 local areas across England, Scotland and Wales”.

These 121 areas have been highlighted as both MFG and Morrisons run fuel forecourts so would face “limited competition” after the merger, “meaning 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.”

The CMA said CD&R has five working days to offer proposals to address these concerns after which the CMA would have five working days to consider whether to accept them or refer the deal for an in-depth phase two investigation.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week