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Watchdog to probe Tesco's £3.7m merger with Booker

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Tesco faces an investigation into its £3.7bn deal to merge with food wholesaler Booker

Tesco faces an investigation into its £3.7bn deal to merge with food wholesaler Booker

Tesco faces an investigation into its £3.7bn deal to merge with food wholesaler Booker

The UK's competition watchdog has launched an investigation into Tesco's £3.7bn deal to merge with food wholesaler Booker.

The Competition and Markets Authority (CMA) said the initial probe will last until July 25 and will discover whether the tie-up will curb choice for customers.

Britain's biggest supermarket has faced criticism from investors over the move, with some shareholders branding the takeover tilt a "distraction" and urging the Big Four grocer to scrap it.

In a statement, the CMA said it will "assess whether the deal could reduce competition and choice for shoppers and other customers, such as stores currently supplied by Booker".

The watchdog said the deal may face a further investigation, which could last 24 weeks, if it fails to win clearance during the first phase.

Tesco announced the deal in January this year, saying it would create "the UK's leading food business" and deliver significant cost savings for the combined group.


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