CMA raises local competition concerns
BILLIONAIRE business moguls Zuber and Mohsin Issa have said they will sell almost thirty of their EG Group petrol forecourts in response to concerns raised by the UK competition regulator Competition and Markets Authority (CMA).
Brothers Zuber and Mohsin Issa, whose private equity firm TDR Capital purchased supermarket chain Asda last year, said they will sell 27 of its forecourts after the CMA found ‘local competition concerns’.
The group acquired Asda in a £6.8 billion deal with US supermarket giant Walmart.
TDR Capital owns a majority share in Asda, with Walmart retaining an equity investment in the business and a seat on the company board.
The CMA is currently consulting on TDR Capital’s proposal to divest 27 EG Group filling stations from its portfolio.
Legal expert Jonathan Compton, partner at DMH Stallard, said:“The CMA has sweeping powers to investigate, seize documents and property and enter business premises without warrant.
“In addition it can issue fines of up to 10% of global turnover. It is not perhaps the best known of our regulatory watchdogs, but it is arguably the most powerful.
“Any undertaking or group of undertakings distorting the free market should take heed and beware. Even an ‘accidental’ breach can cost it dearly.”
• Based in Blackburn, Euro Garages was founded in 2001 by brothers Mohsin and Zuber Issa
The forecourt multiple operates over 700 sites across the UK, making it the second biggest forecourt business behind Motor Fuel Group.