Tesco £3.7bn takeover deal given green light by CMA
TESCO’S £3.7bn takeover of wholesale group Booker has been given the provisional green light after the 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 “headto-head” in most areas in which they operate, in particular the catering sector, where Booker makes more than 30% of its sales.
Shares in Tesco rose 6% on the announcement, while Booker also leapt 6% higher in the FTSE 250.
The CMA’s provisional all-clear comes as a surprise, following findings that raised fears the deal could lead to “worse terms”.