Automotive Industry Digest

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Politics and regulation

PRA welcomes block of the proposed Sainsburys and Asda merger plans

“The PRA welcomes the news that the Competition and Markets Authority (CMA) has blocked the proposed merger between Sainsbury’s and Asda, over fears it would raise prices at the supermarkets’ petrol stations”, said Brian Madderson, Chairman of the Petrol Retailers Association (PRA).

Madderson recently made representations to the CMA regarding Sainsbury’s proposed to cap retail fuel margins for a period of 5-years in a late attempt to win over the regulator.

He continued, “This move would have been inconsistent with the CMA’s policy of seeking structural changes as opposed to behavioural changes. With hundreds of Sainsbury’s filling stations across the UK, it would have proved very costly and difficult to enforce a margin cap in a way that was properly transparent.

“We believe Sainsbury’s proposed solution could have caused long term damage to the UK’s fragile refuelling network.

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