UK regulator clears Asda and rival Co-op's fuel deal, says no Phase 2 probe

(Reuters) - Britain's competition regulator said on Tuesday it had cleared supermarket group Asda's 611 million pound ($771.14 million)acquisition of Co-operative Group's Arthur Foodstores.

Asda's purchase of Britain's seventh biggest supermarket chain Co-op's 132 petrol stations and attached stores, which was completed in October, will therefore not be referred to an in-depth Phase 2 investigation.

The Competition and Markets Authority (CMA), which had started a Phase 1 investigation on the deal earlier this year, said in March the deal could lead to higher prices or less choice in some parts of the country.

It had said the deal raises concerns in 13 locations across the United Kingdom in each of which the merging businesses currently compete for customers and would not face sufficient competition after the merger.

Asda, which is owned by brothers Zuber and Mohsin Issa and private equity firm TDR Capital, had submitted undertakings in March to address the regulator's concerns to avoid a Phase 2 investigation.

($1 = 0.7923 pounds)

(Reporting by Anchal Rana in Bengaluru; Editing by Shinjini Ganguli)