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CMA finds CD&R’s acquisition of Morrisons could lead to higher fuel prices in 121 locations across the country where both firms own forecourts.

In January, the Competition and Markets Authority (CMA) opened its investigation into Clayton, Dubilier & Rice Holdings LLC’s (CD&R) £7.1 billion purchase of Wm Morrisons Supermarkets Ltd (Morrisons).

CD&R is the owner of the Motor Fuel Group (MFG), the largest independent operator of petrol stations in the United Kingdom. MFG operates 921 petrol stations across England, Scotland and Wales under a number of different brands, such as Esso, BP, Shell, Texaco, Jet and Murco. While Morrisons is predominantly a groceries retailer, it operates 339 petrol stations, the vast majority of which are located at its supermarkets across the UK.

Following its Phase 1 investigation into the merger, the CMA has found that the deal raises competition concerns in relation to the supply of petrol and diesel in 121 local areas across England, Scotland and Wales. These are all areas in which MFG and Morrisons both have petrol forecourts and would face only limited competition after the merger, meaning that the deal could lead to an increase in prices.

Colin Raftery, Senior Director of Mergers at the CMA, said:

Prices for petrol and diesel have recently hit record highs, which makes it even more important that we don’t allow a lack of competition at the pump to make the situation worse.

We’re concerned that this deal could lead to higher prices for motorists in some parts of the country. But if CD&R and Morrisons are able to address these concerns, then we won’t need to move on to an in-depth investigation of the merger.

CD&R 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.

For more information, visit the CD&R / Morrisons merger inquiry page.

Notes to Editors

1. Following a Phase 1 review, the CMA has found that CD&R’s acquisition of Morrisons gives rise to a realistic prospect of substantial lessening of competition (SLC) in 121 areas across England, Scotland and Wales.
2. The CMA served an initial enforcement order on 26 October 2021 requiring the companies to operate independently, as they did before the purchase. The CMA has granted 7 specific derogations on the enforcement order since then, and the order remains in force. Details of the order can be found on the CD&R / Morrisons merger inquiry page.
3. All media enquiries should be directed to the CMA press office by email on press@cma.gov.uk, or by phone on 020 3738 6460.