Tesco’s £3.7 billion (US$5 billion) takeover of wholesaler Booker has been fully cleared by the UK’s competition watchdog despite widespread concern that the deal will hand the supermarket an even greater grip on the market.
The grocer stunned industry observers in January when it first announced the deal, which many thought would require significant concessions or a disposal of Tesco’s One Stop convenience chain to win competition approval.
However, the Competition and Markets Authority (CMA) has announced, following a seven-month review, that it has concluded the deal does not raise competition concerns.
The CMA justified its decision by saying that Booker doesn’t own the shops it supplies, such as Londis, Budgens, Premier and Happy Shopper. “So although these shops compete with Tesco, Booker cannot directly determine how they compete,” the authority said. The CMA reached this decision despite evidence from rival wholesalers about the amount of stock shop owners are obliged to buy from Booker to keep one of its brands above the door.
The watchdog said that during its investigation it found a quarter of so-called “symbol” group retailer and a third of independent shops switched wholesalers at least once a month.
Full Content: The Irish Times
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Google and South Carolina Clash Over State Records Demand
May 8, 2024 by
CPI
Telefonica Germany Teams Up with Amazon Web Services to Migrate 5G Customers
May 8, 2024 by
CPI
Federal Judge Grants $7.4 Million Settlement in Pork Price-Fixing Case
May 8, 2024 by
CPI
Wilson Sonsini Bolsters Antitrust and Competition Practice with Key Partner Returns
May 8, 2024 by
CPI
EU to Scrutinize Telecom Italia’s Network Sale to KKR
May 8, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI