Tesco's £3.7bn takeover bid for Booker provisionally cleared by CMA

Tesco's takeover of Booker Wholesale has been confirmed by the Competition and Markets Authority without any reservations. The CMA has denied this could happen, believing that retailers would change symbol groups or seek new suppliers if prices increased.

One of the major concerns for independent retailers previously highlighted by the regulator were fears that Tesco would increase Booker's wholesale prices to independent retailers in order to drive sales in its Tesco Express and One Stop stores.

"My only concern would be for local suppliers that supply Bookers, will Tesco dictate what price they are willing to pay for their goods and squeeze their margins even more", says Patel.

The group, recognising that Tesco's shops nevertheless compete with Booker-supplied shops, considered the impact of the merger in every local area where a Tesco and a Booker-supplied shop are both present (over 12,000 shops).

Amazon plotting ad-supported streaming service?
As for advertisers, there's one overwhelming reason to get on Prime Video: Its viewers aren't just on Amazon to watch TV. This could be the first time marketers could push ads to Prime Video's estimated 50 million subscribers .

It said they argued that Booker could raise prices to the shops it supplies.

Today's statement comes after the watchdog recently delayed the findings of its five-month long investigation into the tie-up.

The deal, announced in January, would combine the U.K.'s largest retailer with the country's largest food wholesaler, a surprise move that could bring hefty cost savings for the supermarket operator.

The Times quoted analysts at Bernstein as saying that the CMA's provisional approval was a positive catalyst for Tesco's share price as it reduced uncertainty over this deal.

OPEC likely to extend supply cuts
Stocks were 154 million barrels above the five-year average, the excess that OPEC aims to eliminate. West Texas Intermediate (WTI) crude CLc1 was at $56.62 per barrel, down 14 cents, or 0.25 percent.

The CMA began its investigation in May and launched an in-depth probe in July after Tesco and Booker asked for the inquiry to be fast-tracked. The regulator's final decision will then be published by December 26 at the latest.

Retail analyst Bruno Monteyne at Bernstein said the tie-up would make Tesco "not only the biggest grocer in the United Kingdom but also one of the fastest growing food retailers in the United Kingdom for many years to come". Nisa members yesterday narrowly approved the £143 milion takeover of the chain by the Co-Operative Group, following an earlier abortive takeover by Sainsbury's.

Shares in Tesco (LON:TSCO) have jumped almost five percent in London this morning, as Britain's competition watchdog cleared provisionally the grocer's tie-up with wholesaler Booker Group (LON:BOK).

LiAngelo Ball, UCLA teammates reportedly leaving China after being detained
LiAngelo Ball , Cody Riley and Jalen Hill were arrested for shoplifting while in Hangzhou for a tournament last week. Alibaba spokesman Robert Christie said the company was satisfied overall with this year's game. "There's nothing new.

Latest News