UK competition watchdog to probe Morrisons' purchase of McColl's

LONDON - Britain's competition regulator will investigate supermarket group Morrisons' purchase of convenience store chain McColl's out of administration, it said on Monday.

The Competition and Markets Authority (CMA) will examine whether the deal results in a substantial lessening of competition.

Earlier this month, Morrisons, which has a wholesale supply deal with McColl's, took on all its 1,160 stores, including 270 Morrisons Daily branded stores, in a so-called pre-pack administration.

Morrisons, which trails market leader Tesco, Sainsbury's and Asda, has been owned since October by U.S. private equity group Clayton, Dubilier & Rice (CD&R).