Green light for Booker’s Makro deal
THE Competition Commission has provisionally cleared the completed acquisition of Irlam-based Makro by cash and carry operator Booker Group.
Loss-making wholesaler Makro was sold by its German parent to Northampton-based Booker in May for £139.7m.
In a summary of its provisional findings published today, the Competition Commission has concluded that the merged company would continue to face sufficient competition from other wholesalers in all areas affected by the merger.
It believes the deal will not lead to a substantial lessening of competition. In a brief statement the Booker Group said it welcomed the announcement.
Simon Polito, the commission’s deputy chairman and chairman of the Booker/Makro inquiry, said: “The wholesaling market is complex, diverse and dynamic. Our evidence points to the fact that customers can and do switch between different types of wholesalers, so we looked closely at all the areas where Booker and Makro stores currently overlap to see what other sources of supply would remain.
“In all the areas we looked at, Booker would continue to face competition from national, regional or local wholesalers so we don’t believe customers will face higher prices, lower-quality service or other issues as a result of the merger.”
Th commission added that, “in the absence of the takeover by Booker, Makro would most likely have ceased trading and its properties sold to various parties”. It will consider responses to the provisional findings before publishing its final report by April 24.
