(Sharecast News) - The Competition and Markets Authority said on Monday that it has provisionally cleared Morrisons' takeover of convenience retailer McColl's.
The decision comes after Morrisons offered to sell 28 convenience stores to address the CMA's concerns about competition. This includes 26 stores in England, one store in Scotland and one in Wales.
Morrisons agreed in May to rescue McColl's from administration in a £190m deal.
However, last month the competition watchdog raised concerns over 35 locations where it believed there was potential for reduced competition between McColl's, Morrisons and Motor Fuel Group, which owns the supermarket chain.
On Monday, Sorcha O'Carroll, CMA senior director of mergers, said: "Our preliminary view is that the sale of these stores will preserve competition in these local areas and prevent consumers from losing out due to this deal, at a time when shoppers are already facing rising prices.
"If, after reviewing the responses to our consultation, we conclude that the competition issues have been addressed, the deal will be cleared."
Mccoll's (MCLS)