Tesco Faces CMA Investigation Into Booker Takeover
UK retailer Tesco is facing an investigation into its proposed acquisition of Booker by the Competition and Markets Authority.
The first phase of the investigation runs until 25 July, and will asses 'whether the deal could reduce competition and choice for shoppers and other customers'. If the merger is not cleared after this period, there will be an in-depth investigation for up to six months.
Food wholesaler Booker Group said last month that it hoped the £3.7 billion merger would be completed by late 2017 or early 2018, however, this investigation could push that date back significantly.
Tesco chief executive Dave Lewis said that this merger would create "the UK's leading food business", when the deal was announced in January.
However, the Financial Times reports that some suppliers 'have privately expressed unease at the proposed combination', which would control nearly 28% of the UK convenience store market.
The Competition and Markets Authority is currently seeking views on the merger from all interested parties.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.