Regulator to probe Asda acquisition by Issa brothers
BRITAIN on Tuesday (8) launched a competition probe into the takeover of supermarket giant Asda by the wealthy Issa brothers who run petrol stations and food outlets worldwide.
The Competition and Markets Authority (CMA) said in a statement that it has decided to bring a formal phase one investigation, after the European Commission decided to refer the matter to the UK.
The watchdog said it would examine whether the Asda takeover will result “in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services”.
US retail giant Walmart in October agreed to sell its British supermarket division Asda to the Issa brothers and a private equity group for £6.8 billion.
Asians Mohsin and Zuber Issa joined with private equity firm TDR Capital to purchase Asda, which last year regulators blocked from merging with British supermarket group Sainsbury’s. While the brothers and TDR are acquiring a majority stake in Asda, Walmart will retain an investment and have a seat on the new board.
Born in Blackburn, the Issas began their careers working in their father’s local petrol station.
They bought their first petrol station in 2001, which was the start of Euro Garages and which has grown into an international group running 6,000 sites across three continents.
Founded in 1965, Asda has the third biggest market share among supermarket chains in the UK, behind Sainsbury’s and the UK’s largest retailer Tesco. Walmart had bought Asda in 1999.
Britain’s supermarkets have meanwhile experienced surging demand for online food shopping during the pandemic. As a result, while the nation has shed tens of thousands of jobs, supermarkets have embarked upon a massive recruitment drive.