Morrisons ordered to keep McColl's separate amid CMA probe
By Josh White
Date: Monday 30 May 2022
(Sharecast News) - The Competition and Markets Authority announced on Monday that it is investigating the completed acquisition by Morrisons of the assets of the collapsed convenience retailer McColl's.
Wm Morrison Supermarkets purchased "certain assets" of Mccoll's Retail Group, Martin McColl, Clark Retail, Dillons Stores, Smile Stores, Charnwait Management, and Martin Retail Group on 9 May, after McColl's collapsed into administration after struggling with heavy debts.
McColl's was in the process of converting the majority of its store estate to the 'Morrisons Daily' brand under an agreement struck with the supermarket chain.
"On 9 May, Wm Morrison Supermarkets completed the acquisition of McColl's via Alliance Property Holdings - a wholly-owned previously non-trading subsidiary, the purpose of which, since completion of the acquisition by Wm Morrison Supermarkets of McColl's, has been solely to act as the holding company for McColl's," the competition regulator said on Monday.
It said it had "reasonable grounds for suspecting" that Wm Morrison Supermarkets had "ceased to be distinct" from the McColl's assets.
"The CMA is considering whether it is or may be the case that a relevant merger situation has been created and whether the creation of that situation has resulted or may be expected to result in a substantial lessening of competition in any market or markets in the United Kingdom."
As a result, the regulator said it had ordered that the acquired assets be operated separately from Morrisons on an arm's-length basis while it carried out its investigation.
In its 16-page enforcement order, the CMA said failure to comply could result in a penalty of up to 5% of both domestic and international turnover.
Reporting by Josh White at Sharecast.com.
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