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PRIVACY
Retail & Consumer

Competition watchdog the CMA launches investigation into Morrisons takeover

The investigation looks likely to centre on the chain's petrol filling stations

Morrisons supermarkets (Image: Morrisons)

The º£½ÇÊÓÆµ competition regulator has launched an initial investigation into the £7bn takeover of Morrisons by a US private equity firm.

Final agreement on the takeover of the Bradford-based supermarket chain by Clayton, Dubilier & Rice (CD&R) was reached recently and the company was taken off the Stock Exchange this week.

But the Competition and Markets Authority (CMA) has now served an initial enforcement order on Morrisons, CD&R and Motor Fuel Limited, the forecourt giant also owned by the US investment group.

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In the order, the regulator said the parties must remain separate and hold off integration plans until the probe has taken place.

It is understood that the CMA is particularly keen to investigate whether there could be competition issues surrounding Motor Fuel's petrol station sites and Morrisons' own forecourts.

CD&R bought the Motor Fuel Group in 2015 for £500m and has grown the forecourt operator to around 900 filling stations across the º£½ÇÊÓÆµ.

Meanwhile, Morrisons operates around 335 fuel outlets, meaning CD&R would control more than 1,200 of the º£½ÇÊÓÆµ's roughly 8,000 petrol stations.