MONDAY, 19 FEB 2018

 

CONNECT

Facebook Linked In Twitter
PwC_02/02_23/02_728x90px
GloriaJeans_266x90px
IMH LTD

Anastasiades: The Cyprus Government Won't Be Led Into a Competitive Frenzy with Turkey

Trump: I Value US Partnership with Cyprus

IMH LTD
MTN_07/07-10/04_468x60px

INTERNATIONAL

brought to you by CIPA

Tesco Takes Over Food Wholesaler Booker

Tesco Takes Over Food Wholesaler Booker

Tesco's £3.7bn takeover of food wholesaler Booker has been provisionally cleared by the UK's competition regulator, the BBC reports.

The Competition and Markets Authority (CMA) said the deal could even increase competition in the wholesale market and reduce prices for shoppers.

It added that Tesco and Booker did not compete head-to-head in most of their activities.

In particular, it said Tesco does not supply goods to the catering sector.

Tesco is the UK's biggest supermarket, with a market share of about 28%. Booker is the UK's largest food wholesaler, and also owns the Premier, Budgens and Londis store brands.

The CMA found that it was "likely Booker would be able to negotiate better terms from a number of its suppliers for some of its groceries, and that it was likely to pass on some of the benefits of these savings to the shops that it supplies".

"This might increase competition in the wholesale market, as well as reducing prices for shoppers."

The CMA concluded that the wholesale market would "remain competitive in the longer term" , because Booker's share of the UK grocery wholesaling market, at less than 20%, "was not sufficient to justify the longer-term concerns".

Simon Polito, chair of the CMA's inquiry group, said: "Our investigation has found that existing competition is sufficiently strong in both the wholesale and retail grocery sectors to ensure that the merger between Tesco and Booker will not lead to higher prices or a reduced service for supermarket and convenience shoppers."

According to the BBC, Tesco and Booker both welcomed the CMA's provisional decision and added that they would continue to work with the competition regulator, which is due to publish its final report by the end of the year.

Booker said it was "pleased that the CMA has provisionally concluded that this transaction does not lessen competition".

Tesco said it anticipated the merger would be completed in early 2018.

The retail industry is undergoing a period of consolidation. A shift in shopping habits, fierce competition from the likes of Aldi and Lidl, and the arrival of Amazon has prompted retailers to look to bolster their businesses by buying food wholesalers.

On Monday, shareholders in the Nisa convenience store group approved the company's £137m takeover by the Co-operative Group.

MORE ON INTERNATIONAL

Amazon to Pay $1.2 Million in Settlement over Pesticide Sales

Amazon.com Inc will pay a $1.2 million penalty to settle nearly 4,000 alleged violations ...

EC: Social Media Companies Need to Do More to Fully Comply with EU Consumer Rules

Social media companies need to do more to respond to the requests, made last March by the ...

Commission Presents Ideas for a More Efficient European Union

Ahead of the Informal Leaders' meeting on 23 February 2018, the European Commission ...

FROM AROUND GOLDNEWS

   

Amazon to Pay $1.2 Million in Settlement over Pesticide Sales

Amazon.com Inc will pay a $1.2 million penalty to settle nearly 4,000 alleged violations of U.S. law in a move to prevent harmful exposure to pesticides ...
   

Trump: I Value US Partnership with Cyprus

US President Donald Trump has congratulated Cyprus President Nicos Anastasiades on his re-election, noting that he values the US partnership with Cyprus, which ...
   

EC: Social Media Companies Need to Do More to Fully Comply with EU Consumer Rules

Social media companies need to do more to respond to the requests, made last March by the European Commission and Member States' consumer authorities, to ...
   

Data Management and Protection Forum: From GDPR to ePrivacy

George Z. Georgiou & Associates LLC is presenting the Data Management and Protection Forum on Thursday, 22 February 2018 at the Hilton Park Hotel in ...
   

Commission Presents Ideas for a More Efficient European Union

Ahead of the Informal Leaders' meeting on 23 February 2018, the European Commission is presenting a number of practical steps that could make the European ...
   

Logicom Cyprus Marathon to Celebrate its 20th Anniversary in Paphos

The Logicom Cyprus Marathon is fast approaching, and this year it will be celebrating its 20th Anniversary in Paphos. Logicom Public Ltd will once again be the ...
   

GCC Computers Named ‘Top Enterprise Partner of the Year’ For Greece and Cyprus Markets

In the context of the HPE Greece Annual Partner Event 2018 held in Athens, Greece, on Thursday, 1 February 2018, GCC Computers was announced “Top HPE ...
   

Cobalt Air Adds Access to Abu Dhabi from Larnaca

Hot on the heels of this week’s earlier route announcement to Düsseldorf, Cobalt Air is proud to announce a new three times weekly service linking ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Deloitte_2016_300x250px
Gold_Issue_300x250px

IMH LTD