WMT Walmart Inc

--U.K. regulator referred the deal for investigation in April, citing higher petrol prices

--Issa brothers offered to sell 27 EG Group petrol filling stations

--Ruling allows Issa brothers, TDR to deliver on Asda strategy

By Jaime Llinares Taboada and Ian Walker

The U.K. Competition and Markets Authority on Wednesday accepted undertakings from the Issa brothers and TDR Capital LLP that were offered to satisfy its concerns over their acquisition of U.K. grocer Asda Group.

The British regulator said that, as a result, the transaction won't be referred to an in-depth Phase 2 investigation.

The CMA had said in April that the 6.8 billion-pound ($9.58 billion) acquisition of Asda from Walmart Inc. could lead to higher petrol prices in some parts of the U.K.

Specifically, it raised local competition concerns in the supply of road fuel in 36 areas across the U.K., and the supply of auto-LPG fuel in another area.

The brothers subsequently offered to sell 27 EG Group Ltd. petrol filling stations and the regulator said in May that it was minded to accept this and allow the deal to go through.

The brothers and TDR Capital said Wednesday that the CMA's confirmation enables them to start working with the Asda management team to deliver the strategy.

"We welcome today's announcement from the CMA, which means we can now fully embark on the next stage of our journey under new ownership and work with Mohsin, Zuber and TDR to build an even stronger Asda that gives our customers outstanding choice, value and service in our stores and online," Asda Chief Executive and President Roger Burnley said.

On Oct. 3, Walmart Inc. agreed to sell Asda to TDR Capital, a Europe-focused buyout firm, and U.K.-based entrepreneur brothers Mohsin and Zuber Issa.

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT and Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

June 16, 2021 10:03 ET (14:03 GMT)

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