CMA gives green light to Booker’s acquisition by Tesco for £3.7bn

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Tesco’s £3.7bn acquisition of wholesaler Booker Group, the owner of the Salford-based Makro business, has been approved by the Competition and Markets Authority.

The has CMA announced that it has provisionally found that the deal would not be expected to result in a substantial lessening of competition.

It said a group of independent panel members had investigated how the union of the UK’s largest grocery retailer and the biggest grocery wholesaler would affect competition.

After looking at evidence from the two companies and more than 65 wholesalers, suppliers and retail chains, it found that there was “sufficient” competition to deal with the merger.

A spokesman for Booker said: “Booker welcomes today’s announcement from the CMA that it has provisionally cleared the company’s proposed merger with Tesco.

“We are pleased that the CMA has provisionally concluded that this transaction does not lessen competition, and will continue to work with the CMA ahead of its publication of a final decision, expected in December.

“We are grateful for the support of customers, suppliers and colleagues during this process.”

A statement from Tesco said: “Tesco PLC welcomes the announcement from the Competition and Markets Authority (CMA) that it has given provisional unconditional clearance of our merger with Booker Group .

“We look forward to creating the UK’s leading food business, bringing together our combined expertise in retail and wholesale. This merger has always been about growth, and will bring benefits for independent retailers, caterers, small businesses, suppliers, consumers, and colleagues.

“We will continue to work with the CMA as it prepares the final report due by the end of December. We anticipate completion of the merger in early 2018.”