Morrisons’ acquisition of c-store chain McColl’s has taken another step towards completion after the competitions watchdog decided not to escalate its investigation into the merger.
The Competition and Markets Authority (CMA) announced today it would accept Morrisons’ offer to sell 28 stores from McColl’s existing estate and would not be escalating its ongoing investigation to a second phase.
In a statement, the CMA said it would take Morrisons’ word that it will “act in good faith” and divest itself of the agreed number of stores “as soon as reasonably practicable”.
It takes Morrisons one step closer to completing its £190m bid to save the convenience store after it fell into administration, threatening 16,000 jobs and 1,100 store closures.
Morrisons chief executive David Potts said: “I am pleased that the acquisition of McColl’s has cleared the final regulatory hurdle. McColl’s is a business with great potential and over the last few months we have been making plans for its integration into Morrisons, for investment and for growth. We will be outlining these plans shortly.”
The CMA first launched its investigation into the acquisition back in July, raising concerns that competition for shoppers would be potentially harmed by the move in 35 areas.
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