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UK: Tesco’s $3.7bn Booker purchase given provisional go-ahead

 |  November 14, 2017

Tesco’s £3.7 billion (US$4.9 billion) takeover of wholesale group Booker has been given the provisional green light after the UK’s competition watchdog said it would not lead to higher prices or hit service for shoppers.

The Competition and Markets Authority (CMA) said its in-depth investigation into the tie-up found it did not raise competition concerns despite fears raised by a raft of rival wholesalers.

The CMA said Tesco and Booker do not compete “head-to-head” in most areas in which they operate, in particular the catering sector, where Booker makes more than 30% of its sales.

Tesco and Booker have argued their deal will enhance competition in Britain and promote consumer interests. However, rival wholesalers, including Bestway, Spar, Bidfood and Sugro, reject that and have called for the deal to be blocked.

Full Content: Yahoo

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