Tesco gets final approval for £3.7bn takeover of Booker

InvestIgatIon: Watchdog says no competition issues from tie-up

Supermarket Tesco’s £3.7 billion takeover of wholesale group Booker has been given the final all-clear after the Competition and Markets Authority (CMA) said it would not lead to higher prices or hit service for shoppers.

The watchdog said its in-depth investigation into the tie-up found it did not raise competition concerns despite fears raised by 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.

It added it “carefully” considered the impact on competition on shops supplied by Tesco – such as Premier, Londis and Budgens – that it also competes with, but found the supermarket cannot have any direct influence.

Simon Polito, chairman of the CMA’s inquiry group, said: “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.

“Having examined the evidence in depth, we are satisfied this will remain the case following the merger.”

Tesco and Booker welcomed the decision and said the deal is now expected to complete next March.

Tesco has more than 3,000 stores across the UK, while Booker is the country’s largest wholesaler and supplies more than 5,000 shops.

Picture: Steve MacDougall. Booker Wholesale’s depot at Dunsinane Industrial Estate in Dundee.