Asda has confirmed that it has completed its acquisition of 132 grocery retail sites with attached gas stations from The Co-Op.
The acquisition, originally announced in late August for a cash value of £438m, includes 129 existing sites across the UK with retail stores between 1,500 and 3,000 square feet; and adjoining service stations; plus three development sites.
However, the deal remains subject to regulatory approval from the Competition and Markets Authority (CMA), which issued an ‘initial enforcement order’ requiring the Co-Op sites to remain entirely separate from ‘Asda while the CMA conducts its investigation into the deal – a process that is expected to last until mid-2023.
During this time, the sites will be managed separately from the Asda business and only after formal approval of the transaction can colleagues be transferred to Asda employment and stores within the Asda domain. . The approximately 2,300 colleagues currently employed by The Co-op will transition to Asda employment as part of the TUPE transfer in the coming months, following consultation with USDAW.
Mohsin Issa, co-owner of Asda, said the acquisition was part of Asda’s strategy to enter the convenience retail space and create an exciting new part of Asda’s business which brings the value of Asda to more Asda communities: “We are delighted to officially complete the transaction we announced in August and take the next step in our journey towards creating a new and exciting part of our Asda business.
“As millions of families grapple with the daily impacts of the rising cost of living, we are committed to bringing Asda’s high-value groceries and fuel to even more communities across the Kingdom. United thanks to these new stores. Over the past five years we have been consistently ranked as one of the cheapest fuel suppliers in the UK and have been voted the grocer’s most expensive supermarket for 25 consecutive years, meaning that customers in these communities can expect to save millions. each year on the cost of filling their shopping carts and tanks when Asda comes to town.
“We look forward to working with the AMC on their investigation and welcoming our new colleagues from Asda to our excellent company in the months ahead.”
The acquisition of Asda by the founders and co-CEOs of EG Group, Mohsin and Zuber Issa, and the investment funds managed by TDR Capital, has received the green light from the French Competition and Markets Authority (CMA ) in June 2021, after the CMA officially confirmed the acceptance of commitments offered by Mohsin and Zuber Issa and TDR Capital to divest 27 service stations from the EG Group in order to resolve competition concerns related to the Asda agreement.