GovWire

However, overall, the deal would not harm the vast majority of shoppers or other businesses.

On 13 July 2022, the Competition and Markets Authority (CMA) launched its investigation after the companies submitted the reported 190 million deal for review.

McColls operates convenience newsagent shops, with over 1,100 stores across England, Scotland, and Wales, while Morrisons (owned by parent company Clayton, Dubilier & Rice CD&R) has around 500 grocery stores in the UK. CD&R is also the parent company of the Motor Fuel Group (MFG). MFG owns over 800 convenience stores, the vast majority of which are attached to its petrol stations.

Following its Phase 1 investigation, the CMA has found that the merger between Morrisons and McColls raises competition concerns in 35 areas, where McColls or MFG convenience stores will face reduced competition if the deal is allowed to go ahead as planned. Weaker competition could lead to higher prices or a lower quality service for the customers in these areas who rely on their local shops for groceries.

During the investigation, the retailers accepted that the merger would raise concerns in some areas and asked the CMA to move straight to a discussion of remedies to address these concerns.

Morrisons now has 5 working days to offer proposals to the CMA to address the competition concerns identified. The CMA would then have a further 5 working days to consider whether to accept these in principle instead of referring the case to a Phase 2 investigation.

Sorcha OCarroll, CMA Senior Director of Mergers, said:

As the cost of living soars, its particularly important that shops are facing proper competition so that customers get the best prices possible when picking up essentials or doing the weekly shop.

While the vast majority of shoppers and other businesses wont lose out, were concerned that the deal could lead to higher prices for people in some areas. If Morrisons and McColls can address these concerns, then we wont need to move on to an in-depth investigation.

In the meantime, were working closely with Morrisons to ensure that it can provide the support that McColls needs to continue to operate during our investigation.

For more information, visit the Morrisons / McColls merger inquiry page.

Notes to editors

1. The CMAs competition concerns relate to 35 local areas
2. The CMA previously investigated CD&Rs purchase of Morrisons and approved the deal subject to the divestment of 87 MFG petrol stations to address competition concerns. This process is ongoing
3. All enquiries from journalists should be directed to the CMA press office by email on press@cma.gov.uk or by phone on 020 3738 6460
4. All enquiries from the general public should be directed to the CMAs General Enquiries team on general.enquiries
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