Walmart's Sale Of Asda Group Likely To Get Regulatory Approval

(RTTNews) - The sale of Asda Stores Ltd., owned by retail giant Walmart Inc. (WMT), seems likely to be completed soon, after the consortium purchasing the British supermarket chain said that the British regulator Competition and Markets Authority said there was "reasonable grounds" it would accept amended proposals made by the consortium.

U.K.-based Zuber Issa, Mohsin Issa and offered to divest 27 EG Group petrol filling stations in order for the deal to be completed.

The deal to buy Asda, the UK's third-largest supermarket chain, for $6.8 billion pounds, was announced in October last year. However, the regulator found concerns in 37 areas of the UK after the brothers and TDR Capital took over Asda and its 323 petrol stations.

The CMA launched a probe into the acquisition last December to see if the deal would lead to a "substantial lessening of competition". According to CMA, the purchase of Asda could lead to higher petrol prices in some parts of the country.

The brothers will now sell 27 of the 395 EG Group petrol filling stations they own.

"The CMA considers that there are reasonable grounds for believing that the undertakings offered jointly by Mr Zuber Issa, Mr Mohsin Issa and TDR Capital, might be accepted by the CMA under the Enterprise Act 2002," CMA said in a statement.