Tesco's merger with Booker is facing an in-depth Competition & Markets Authority (CMA) probe after a number of areas of concern were identified.
TheCMAbelieves that in more than 350 local areas where there is currently an overlap between Tesco shops and Booker-supplied ‘symbol’ stores, shoppers could face worse terms when buying their groceries.
There are concerns that, after the merger, there is potential for Booker to reduce the wholesale services or terms it offers the ‘symbol’ stores it currently supplies, in order to drive customers to their local Tesco.
The investigation will now focus onwhether the deal could reduce competition by conducting further research and analysis, as well as seeking views and evidence from all those potentially affected by the merger. The timetable for this next phase is 24 weeks, meaning the final report is set to be published by Christmas.
This phase will be carried out by a new set of decision makers – an inquiry group chosen from theCMA’s independent panel members.
Tesco operates more than 3,000 stores across the UK, while Booker supplies services to over 5,000 'symbol' stores - independent grocers such as Premier, Londis, Budgens or Family Shopper.
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