The Phase 1 decision issued today (31 August 2018) by the Competition and Markets Authority (CMA) into the MFG/ MRH merger inquiry is an important positive step in the successful acquisition of MRH by MFG.
William Bannister, MFG’s chief executive officer said: “The CMA’s findings announced today were in-line with the expectations of the MFG board. MFG has cooperated closely with the CMA to assist in their analysis and the fact that concerns have only been identified at 29 locations means that action can be taken quickly to remedy these anti-competitive areas of concern.
“Finally, we now look forward with renewed confidence to develop our business as the UK’s largest independent forecourt operator.”
For information, the CMA’s press release statement is shown below.
Petrol station merger raises competition concerns in local areas
Motor Fuel Group must address CMA concerns over its takeover of rival MRH to avoid an in-depth investigation.
Both companies run petrol stations across the UK, supplying fuel, food and convenience services. The Competition and Markets Authority (CMA) found that competition provided by other major petrol retailers and supermarkets will ensure that the merger would not result in higher prices for motorists across the country as a whole.
However, after conducting an initial (Phase 1) investigation into the takeover, the CMA has identified concerns at 29 locations in the UK where MFG and MRH are close competitors, and where the takeover could result in prices rising for local motorists.
MFG now has until 7 September to address the CMA’s competition concerns. If it is unable to do so, the merger will be referred for an in-depth (Phase 2) investigation.
More information can be found on the MFG / MRH case page.