CMA investigates Morrisons’ purchase of McColl’s

The UK’s Competition and Markets Authority (CMA) said on Wednesday it has started investigating if Bradford-based supermarket giant Morrisons’ acquisition of certain assets of convenience store chain McColl’s would lead to lesser competition.

Morrisons in May bought 1,160 McColl’s stores in a so-called pre-pack administration.

“The Competition and Markets Authority (CMA) is considering whether it is or may be the case that this transaction … may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services,” said the CMA in a statement.

McColl’s went into administration with debt of just under £170 million and its stock was suspended from trading in May.