CMA decision: Tesco Booker deal to go ahead

Tesco Booker
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Tesco’s £3.7bn takeover of Booker has been cleared by the Competition and Markets Authority (CMA).

The regulatory body approved the deal, which was first announced in January, after it received feedback from hundreds of wholesalers, suppliers and retailers about its potential impact. It ruled the merger would not have a negative impact on the pricing or the quality of service across the convenience market.

CMA panel member Simon Polito said: “We have carefully listened to feedback from retailers and wholesalers who operate in what are highly competitive UK retail and wholesale sectors.

“Retailers have told us that they shop around for the best prices and service from their wholesaler, and we are confident that this will continue after Tesco buys Booker,” said Mr Polito.

“This has been an important investigation for us. Millions of people use their local supermarket or convenience store to buy their groceries or essentials, so it is vital that they have enough choice to secure the best deal for them.”

The CMA added competition in the wholesale market may increase as a result of Booker using Tesco’s buying power to negotiate better pricing.

A Booker spokeswoman said: "Booker welcomes the announcement from the CMA  that it has given unconditional clearance of the company's proposed merger with Tesco."

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By Alex Yau Avatar
By Alex Yau 20 Dec, 2017

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