Morrisons keeps McColl’s at arm’s length as takeover probed

The competition regulator has told Morrisons to keep its business separate from McColl’s while it investigates the takeover. Morrisons beat petrol station operator EG Group to buy McColl’s out of administration earlier this month, taking on responsibility for 1,160 stores. But, on Monday, the Competition and Markets Authority issued an order requiring Morrisons to halt any integration of the two companies’ operations while it probes the deal. Morrisons has not operated convenience stores directly since 2015 when it sold its loss-making M Local brand in order to focus on its conventional supermarkets. But it acts as a wholesaler to McColl’s, which was in the process of rebranding hundreds of its stores as “Morrisons Daily” before it entered administration. Clayton, Dubilier and Rice, the US private equity group that bought Morrisons in October last year, also owns Motor Fuel Group, which operates 921 petrol stations around the UK. Some of them have convenience stores attached to them, operated by Londis, Budgens or Marks & Spencer, and it is likely to look at introducing the Morrisons brand at many more. The FT (£)