Asda deal may push up petrol

CMA PROBES THREAT TO PUMP PRICES

ASDA’S £6.8billion take-over by petrol forecourt billionaires the Issa brothers and TDR Capital could result in drivers paying more to fill up, competition watchdogs warn.

The Competition and Markets Authority said that, as Asda and the Issas’ EG chain of petrol stations are “key players” in the market, the takeover could lead to a “substantial lessening of competition” and prices rising in 36 UK areas.

It has given private equity group TDR and the Issas five days to supply legally binding proposals that would address the CMA’s concerns.

The CMA has five days after receiving any proposals to decide whether or not to accept them or conduct a more in-depth probe into the Asda takeover.

“Our job is to protect consumers by making sure there continues to be strong competition between petrol stations, which leads to lower prices at the pump,” Joel Bamford, senior director of mergers at the CMA, said.

A spokesman for the Issa brothers and TDR said: “We will be working constructively with the CMA over the course of the next 10 days in order to arrive at a satisfactory outcome for all parties.

“This would provide welcome certainty for our colleagues, suppliers and customers, and allow us to move forward with our exciting plans for investment and growth at Asda.”

Earlier this year, TDR and the Issas sold £3.5billion of high interest “junk” bonds to help finance their takeover of Asda.

The GMB union fears loading up Asda with high interest debt will threaten its competitiveness and jobs.