UK Regulator Provisionally Clears Tesco's Merger with Booker
14 November 2017 - 9:57AM
Dow Jones News
By Ian Walker
The U.K. Competition and Markets Authority provisionally cleared
a merger between Great Britain's number one grocer Tesco, and
wholesaler Booker, noting that the level of competition in their
respective markets is sufficient to counterbalance any rise in
prices or reduction in service levels.
The regulator said that the two companies don't compete
head-to-head in most of their activities, stressing that Tesco
doesn't supply the catering sector where Booker makes more than 30%
of its sales.
The U.K. regulatory body referred the merger for further
investigation in July as it believed the deal could lead to worse
terms for shoppers.
On May 31 the authority said that it would investigate Tesco's
proposed 3.7 billion-pound ($4.3 billion) cash-and-stock offer for
Booker. The deal, announced in January, would combine the U.K.'s
largest retailer with the country's largest food wholesaler, a
surprise move that could bring hefty cost savings for the
supermarket operator.
"Our investigation has found that existing competition is
sufficiently strong in both the wholesale and retail grocery
sectors to ensure that the merger between Tesco and Booker will not
lead to higher prices or a reduced service for supermarket and
convenience shoppers," Simon Polito, chair of the regulator's
inquiry group, said Tuesday.
In response, Tesco said that it welcomed the announcement and
that it would work with the regulator as it prepares its final
report, due by the end of the year.
Tesco expects to complete the merger in early 2018.
(END) Dow Jones Newswires
November 14, 2017 03:42 ET (08:42 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Tesco (PK) (USOTC:TSCDY)
Historical Stock Chart
Von Sep 2024 bis Okt 2024
Tesco (PK) (USOTC:TSCDY)
Historical Stock Chart
Von Okt 2023 bis Okt 2024
Echtzeit-Nachrichten über Tesco PLC (PK) (OTCMarkets): 0 Nachrichtenartikel
Weitere Tesco (PC) News-Artikel