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Morrisons’ McColl’s store sale paves way for deal clearance
Published by Jessica Weisman-Pitts
Posted on October 10, 2022
2 min readLast updated: February 3, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on October 10, 2022
2 min readLast updated: February 3, 2026
LONDON (Reuters) – British supermarket group Morrisons’ purchase of convenience retailer McColl’s looks set to be cleared after the competition regulator said it was likely to accept an offer to sell 28 stores.
LONDON (Reuters) – British supermarket group Morrisons’ purchase of convenience retailer McColl’s looks set to be cleared after the competition regulator said it was likely to accept an offer to sell 28 stores.
Morrisons bought the 1,100 store McColl’s for a reported 190 million pounds ($210 million) in May after it collapsed into administration.
However, the Competition and Markets Authority (CMA) launched an investigation into the deal in July.
Following an initial probe, the watchdog found the deal would not harm the vast majority of UK shoppers or other businesses, but that it raised competition concerns in 35 areas.
To address these concerns, Morrisons offered to divest 28 McColl’s stores. The CMA said it was minded to accept these proposals.
“The CMA is now consulting on the proposals – known as undertakings – for the sale of these stores. If the CMA accepts the proposals, the deal would be cleared to proceed,” it said.
The 500-store Morrisons has been owned by private equity firm Clayton, Dubilier & Rice (CD&R) for a year.
CD&R is also the parent company of the Motor Fuel Group, which owns more than 800 convenience stores.
Morrisons last month reported a halving of third-quarter core earnings against the backdrop of a cost of living squeeze.
It has also lost its place at Britain’s fourth largest grocer to discounter Aldi.
($1 = 0.9035 pounds)
(Reporting by James Davey; Editing by Kirsten Donovan)
Divestment refers to the process of selling off a subsidiary or asset, often to comply with regulatory requirements or to address competition concerns in a market.
Core earnings are a company's profits derived from its primary business operations, excluding any income from non-operational activities such as investments or asset sales.
A merger is a business combination where two companies join to form a single entity, often to enhance competitiveness, expand market reach, or achieve economies of scale.
Administration in business refers to a legal process where a company is unable to pay its debts and is placed under the management of an administrator to protect creditors and attempt to rescue the business.
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