CD&R to sell 87 petrol stations to clear way for Morrisons takeover

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Private equity giant Clayton, Dubilier & Rice (CD&R) is to sell almost 90 petrol station forecourts, paving the way for it to complete its £7bn takeover of Morrisons.

CD&R already owns Motor Fuel Group (MFG) – the largest independent petrol station operator in the UK – which runs 921 sites across England, Scotland and Wales.

The Competition and Markets Authority (CMA) raised concerns earlier this year that 121 areas could be subject to higher fuel prices if the Morrisons acquisition goes ahead.

The competition watchdog warned in March that the deal could face a deeper phase two investigation, should CD&R fail to address its concerns.

CD&R has now agreed to dispose of 87 MFG locations to get the deal rubber-stamped. The buyers of the 87 petrol stations will also need to be approved by the CMA.

The authority said it was “minded to accept these proposals”, which would “restore the loss of competition brought about by the deal across each of the 121 local areas in which the concerns were identified”.

CMA senior director of mergers Colin Raftery said: “The sale of these petrol stations will preserve competition and prevent motorists from losing out due to this deal, which is particularly important when prices have recently hit record highs.

“If we conclude that the competition issues have been addressed following a consultation on CD&R’s offer, the deal will be cleared.”