Go-ahead for Booker buy­out

Yorkshire Post - - NEWS -

TESCO’S £3.7BN takeover of whole­sale group Booker has been given the pro­vi­sional goa­head af­ter the com­pe­ti­tion watch­dog said it would not lead to higher prices or hit ser­vice for shop­pers.

The Com­pe­ti­tion and Mar­kets Au­thor­ity (CMA) said in­quiries 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 ca­ter­ing, where Booker makes more than 30 per cent of its sales.

Tesco’s shares rose six per cent on the an­nounce­ment, while Booker also leapt six per cent higher in the FTSE 250.

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