The competitions watchdog has pinpointed more than 350 local areas where competition could be damaged by Tesco’s planned £3.7bn takeover of Booker.
The Competition and Markets Authority has said it is concerned that wholesaler Booker, which owns the Londis, Premier and Budgens brands, could reduce the services it offers these “symbol” stores in an effort to drive customers to their local Tesco instead, the Telegraph reports.
The CMA has confirmed the deal will face an in-depth “phase 2” investigation, which could take up to 24 weeks.
The competitions watchdog has pinpointed more than 350 local areas where competition could be damaged by Tesco’s planned £3.7bn takeover of Booker.
The Competition and Markets Authority has said it is concerned that wholesaler Booker, which owns the Londis, Premier and Budgens brands, could reduce the services it offers these “symbol” stores in an effort to drive customers to their local Tesco instead.
The CMA has confirmed the deal will face an in-depth “phase 2” investigation, which could take up to 24 weeks.
The CMA launched its initial investigation in May, before being asked by Tesco last month to speed up the process.
Tesco could be forced to offload hundreds of its small high-street stores if it is ruled that the Booker deal provides it with too much control over the nation’s food supply.
The supermarket giant has also faced unrest from shareholders over the deal, with some saying it is a “distraction” from the company’s turnaround in the UK.
