Tesco calls on competition watchdog to speed up Booker deal probe

Tesco has asked competition watchdogs to speed its £3.7 billion takeover of wholesaler Booker, putting it on the same fast-track process as BT’s takeover of EE and Ladbrokes’ Coral merger.

The Competition and Markets Authority opened an initial, phase 1 investigation into the deal over concerns the tie-up last month. Critics feared the tie-up, which Tesco hopes will give it access to the growing restaurant market, would give the grocer too much power.

That was due to complete in less than a month, but the regulator was widely expected to open a more in-depth, phase 2 inquiry.

Tesco, which has been working with the CMA, said today it proposed the fast-track process to move more quickly to phase 2. It is understood that the unusual nature of the deal made it unlikely the watchdog would get through the detail involved by its July 25 deadline.

The competition authority is now likely to reach a phase 1 decision in the next 10 days and press ahead with phase 2, which could take 24 weeks.

Rivals have raised fears that the combination of Tesco and Booker, which owns Budgens, Londis and Premier and supplies caterers and restaurants, would affect the convenience sector.

Tesco, advised by law firm Freshfields, already owns the One Stop chain and has an Express convenience format.

The merger is thought to have triggered Sainsbury’s interest in a potential £130 million takeover of convenience stores chain Nisa.

Tesco, which is led by Dave Lewis, and Booker, headed by Charles Wilson, have argued that Booker’s franchise model means the grocer will have no influence over pricing at its stores and Booker customers will benefit from the combined group’s scale.