CMA set to approve Morrisons’ takeover of McColl’s

The Competition and Markets Authority (CMA) have taken the first steps to approve supermarket chain Morrisons £190 million purchase of McColl’s newsagents and convenience stores.

To see the deal go through, Morrisons has agreed to sell off a small number of McColl’s over 1,100 stores in areas where the CMA had concerns that the takeover would impact customer choice.

The CMA will now launch a consultation on Morrisons’ proposals which address 28 of the 35 areas where it has concern, but is minded to accept proposals. None of Stockport’s 11 McColl’s stores are expected to divested by the supermarket chain.

Subsequent to these undertakings, if the CMA accepts the proposals, the deal would be cleared to proceed. Morrisons currently owns 500 supermarkets across the UK, while parent company Clayton, Dubilier & Rice also owns Motor Fuel Group, which operates over 800 convenience stores and petrol stations.

Sorcha O’Carroll, CMA Senior Director of Mergers, said:

“Our preliminary view is that the sale of these stores will preserve competition in these local areas and prevent consumers from losing out due to this deal, at a time when shoppers are already facing rising prices.

“If, after reviewing the responses to our consultation, we conclude that the competition issues have been addressed, the deal will be cleared.”