Tesco is reportedly “at loggerheads” with regulators over the decision to investigate its acquisition of five Somerfield stores.
The Office of Fair Trading has invited rival supermarkets to comment on Tesco’s planned acquisition of stores in Thurso, Bedlington, Little Lever and Ramsbottom - all in the North of England - and North Hykeham in Lincolnshire, raising the prospect of an investigation into each store purchase.
Only last week, the Competition Commission said that it had provisionally found that Tesco’s acquisition of a former Co-op site in Slough had reduced competition in the area, while Tesco was also named as one of a number of parties being investigated by the Office of Fair Trading over alleged price-fixing of dairy products.
A spokesman for Tesco said that the OFT’s interest in its acquisition of the five Somerfield stores was a “routine notification” and was not linked to the other investigations.
A decision on whether any further investigation is needed is expected to be made by October 8.
Tesco has argued that it is more important to consider competition on a national level, but the commission showed its commitment to local considerations in its decision over Slough, when it reiterated the need to maintain healthy competition within a 15-minute drive time.
