Consulting

When Tesco announced a £3.7 billion bid for Booker, it generated significant media and competitor scrutiny, prompting other UK retailers to consider similar mergers. This merger, the first of its kind between a leading grocery wholesaler and retailer, raised unique challenges regarding competition in the UK food supply chain. The UK competition regulator, the Competition and Markets Authority (CMA), was tasked with determining whether the merger would lead to a substantial lessening of competition (SLC). To address the novel issues presented by this case, Tesco and Booker requested a fast track of the CMAs review to an in-depth phase 2 investigation. The CMA agreed, focusing on customer-foreclosure concerns and buyer-power issues raised by suppliers. Our team established a credible relationship with the CMA, which was crucial in effectively presenting our case. Leveraging our longstanding relationship with Tesco, we had developed an antitrust strategy and deal narrative well in advance of the merger announcement. This preparation allowed us to provide robust evidence supporting the case for clearance and to align our communications strategy with the CMAs concerns. We also conducted sophisticated econometric analyses to assess the mergers impact on both retail and wholesale markets. This involved coordinating with a diverse group of advisers, including economists and management consultants, to ensure a comprehensive approach. Ultimately, following the phase 2 investigation, the CMA cleared the merger in December 2017 without any , concluding that it would not lead to higher prices or poorer service. The successful clearance of this deal, completed in March 2018, marked another significant achievement for Tesco and our firm in the realm of antitrust and competition law.