Go-ahead for Booker buyout
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.