Asda takeover may force billionaire brothers to sell 50 petrol stations

The mergers watchdog has warned that the £6.8bn takeover of Asda by the billionaire Issa

The mergers watchdog has warned that the £6.8bn takeover of Asda by the billionaire Issa brothers could force costs up at the pump and demanded more assurances to prevent a whole-blown investigation. 

The Competitors and Marketplaces Authority’s probe determined 36 spots across the British isles in which the tie-up could direct to increased costs for motorists. 

EG Team, the forecourt big owned by Mohsin and Zuber Issa, operates 395 petrol stations, even though Asda owns 323 web-sites. The brothers are to merge Asda’s web-sites with their current forecourt empire in a individual £750m deal as component of their takeover of the grocery store.

The CMA only named one Asda superstore in Aberdeen as problematic.

Other spots in which the two companies overlap, in accordance to data from Altus, involve: Birmingham, with two EG web-sites and 6 Asda web-sites Leeds, with 4 EG web-sites and five Asda web-sites Liverpool, with three EG web-sites and 6 Asda web-sites and Manchester, with 7 EG web-sites and eight Asda web-sites. 

Competitors lawyers estimated that the new house owners of the grocery store chain would have to promote in between 40 and fifty web-sites to get the eco-friendly light-weight from the regulator. 

Business veteran Gerald Ronson, who pioneered self-support petrol stations in the sixties, expressed an desire in obtaining some of the web-sites to insert to his current 265 areas. 

“We’re in the current market to obtain the ideal web-sites. If they have web-sites that they want to promote we would be happy to have a glimpse at them. We don’t have any financial debt and we have sizeable hard cash. We’re prospective buyers,” he claimed.