The UK’s Office of Fair Trading (OFT) has reported British food wholesaler Booker Group's acquisition of Makro Holdings to the Competition Commission (CC), as it fears the deal could damage the cash-and-carry sector.
Booker, Britain's biggest cash-and-carry wholesaler, bought Makro, the loss-making British cash & carry operations of German retailer Metro AG, for £140 million back in May.
The OFT says the deal reduces the number of national operators from four (Booker, Makro, Bestway and Costco) to three, and fears reduced competition could have a negative impact on the UK's cash-and-carry market, which is worth an estimated £11 billion to the UK's economy.
'This merger brings together two of the main cash and carry wholesalers in Great Britain and we are concerned that the loss of rivalry due to the merger may result in higher prices or a reduction in service to both retailers and caterers, and ultimately to consumers,' explained Amelia Fletcher, OFT's chief economist.
Booker - which supplies caterers, convenience stores and grocers - has lent its support to the CC inquiry, and confirmed that Makro UK will be held separate from the rest of the business until the inquiry reaches its conclusion.
