Aldwych Partners’ co-founder Andrew Taylor has written a piece for Private Equity News discussing how the CMA review of TDR’s purchase of Asda could slow down its integration plans for the supermarket.
The article looks at previous TDR deals that the CMA has intervened in, noting that all of these went through but “each time required the sale, or non-acquisition, of certain sites as a condition of granting clearance”. Andrew considers the detail of each of those deals, identifies themes, and as a point of comparison uses a mini-case study of Sainsbury’s attempt to buy Asda back in 2018.
“A common thread to all the TDR deals reviewed by the CMA is that each involves businesses which primarily serve local markets. Addressing CMA concerns has been a relatively simple matter of divesting, or not acquiring, sites in those areas where the CMA believes competition would be lost,” writes Andrew.
The article concludes by predicting possible CMA review scenarios and a timeline for the deal’s completion.