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TESCO announced a £3.7 billion merger with food wholesale giant Booker, owner of Londis and Budgens, yesterday.
The grocery giant said that the deal will create “the UK’s leading food business,” as it saw its shares jump by more than 10 per cent in morning trading.
But experts warn that the pair will face scrutiny from the Competition and Markets Authority (CMA).
Tesco chief executive Dave Lewis tried to wave aside potential concerns about monopoly positions yesterday — as did Booker’s chief executive Charlie Wilson who described the move as “pro-competition.”
The plans are projected to save £200 million, but Mr Lewis stressed that it will “not be driven by a reduction in roles.”
Independent retail analyst Nick Bubb said: “It is by no means clear that the CMA will allow things to proceed very far without having a good look at the [two companies’] overlap.”
