The takeover of Asda by self-made billionaire brothers Mohsin and Zuber Issa of EG Group is being investigated by the Competitions and Markets Authority (CMA).
The Lancashire-based EG Group and private equity partners TDR Capital bought the supermarket giant from US owners Walmart in a £6.8billion deal in October.
But the CMA has now said it has formally launched the first phase of a probe into the deal after a reference from the European Commission, according to the Local Democracy Reporting service.
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It will now look at whether the acquisition will lead to a 'substantial lessening of competition', particularly in the petrol forecourt market.
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The Blackburn-based brothers and TDR - which formed a takeover vehicle called Bellis Acquisition Company for the deal - are understood to have requested the EC referred the deal to the CMA for review.
The regulator now has until February 18 to reach a decision on the first stage of its investigation. and whether to mount a full-blown and lengthy probe.
It has set a deadline of December 22 for interested parties to comment.
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A spokesman for the Issa brothers and TDR Capital: "As we expected, the CMA have launched a Phase One investigation into the acquisition of Asda following a referral from the European Commission today.
'Firms need to complete customs declarations even with Brexit deal'
Businesses that trade with the European Union are being urged to make sure they have the right documentation in place to avoid extra costs and delays after Brexit.
The 海角视频’s transition period with the EU ends on January 1 and after that date 海角视频 companies will need to complete customs declaration forms to export and import goods from the bloc - even if the 海角视频 secures a deal.
Businesses will also need an EORI number to move goods between the 海角视频 and the EU. If companies do not have an EORI they may also face increased costs and delays.
South West-based chambers of commerce Business West said it was “imperative” businesses "acted now" to sort out customs declarations, which will be required from 2021 regardless of any agreement.
The business organisation warned the number of customs declarations which companies need to complete is predicted to rise from 55 million to a huge 255 million.
"We are looking forward to working constructively with the CMA to address any questions they may have."
The deal is not expected to encounter the same fate as the failed attempt by Sainsbury's to buy out Asda, which was blocked by the CMA last year.
But it is thought the regulator may demand the Issa brothers offload some of their EG Group petrol forecourt sites, after having cited reduced competition in fuel retailing among its concerns when it vetoed the Sainsbury's tie-up.
Analysts expect the CMA to require the disposal a handful of sites, estimated at between 10 and 15.
The Issa brothers have committed to keeping Asda's headquarters in Leeds and said they will invest to grow its convenience and online operations.
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Their Blackburn-based EG Group, formerly Euro-Garages, already runs forecourt convenience stores for Spar and French hypermarket chain Carrefour.
It has expanded rapidly from a single petrol station bought in 2001 into a global network of almost 6,000 forecourts across 10 countries and around 44,000 staff.
EG Group attracted customers by bringing big food-to-go brands on to its sites including 110 Starbucks outlets and the largest franchise of KFC stores in the 海角视频, with 125 sites.