LONDON: Tesco, Britain’s largest retailer, tightened its hold on the nation’s food market on Wednesday when the competition regulator gave final approval for its £3.7 billion ($4.95 billion) takeover of wholesaler Booker.
The Competition and Markets Authority (CMA) said it had concluded the deal, first announced in January, does not raise competition concerns.
Its ruling clears the way for Tesco and Booker shareholders to vote on the transaction in February and completion the following month.
The Booker deal is the boldest move yet by Tesco CEO Dave Lewis, providing the supermarket group access to the faster growing “out of home” food market, given Booker’s role as a major distributor to the catering industry.
Clients of Booker, the UK’s biggest wholesaler, include chains such as Wagamama, Carluccio’s, Byron and celebrity chef Rick Stein, as well as thousands of independent caterers.
Booker also owns about 200 cash and carry warehouses in the UK and supplies the Budgens, Londis and Family Shopper convenience chains, which are run as franchise operations.
Tesco has a 28.2 percent share of Britain’s grocery retail market, according to the latest industry data.
The CMA had provisionally cleared the transaction in November, having formally opened its investigation in May.
That unconditional approval surprised analysts and disappointed wholesale and retail rivals who had expected the regulator would insist on some store divestments or restrictions on operations from Tesco.
The CMA said a group of independent panel members had examined all submissions received since its provisional findings before coming to the final view.
“We have carefully listened to feedback from retailers and wholesalers who operate in what are highly competitive UK retail and wholesale sectors,” said Simon Polito, chair of the inquiry group.
“Retailers have told us that they shop around for the best prices and service from their wholesaler, and we are confident that this will continue after Tesco buys Booker.”
For each Booker share, Tesco, which welcomed the CMA’s decision, is offering 0.861 new Tesco shares and 42.6 pence in cash.
“The CMA has poked its nose in all sorts of footling competition issues before ... but it has found nothing to worry about in the Tesco and Booker merger and has not even forced Tesco to sell its One Stop convenience store chain,” said independent retail analyst Nick Bubb.
Tesco’s move on Booker has sparked further consolidation in Britain’s £185 billion grocery market as supermarkets seek additional sources of growth.
Analysts expect more M&A activity as supermarkets seek to use excess capacity in their supply chains.
Sainsbury’s, Britain’s No. 2 grocer, considered a bid for the Nisa convenience chain before the Co-operative Group secured a £138 million deal.
Morrisons, the No. 4, has signed a wholesale supply deal with the McColl’s chain.
Tesco strengthens grip on UK food market with Booker clearance
Tesco strengthens grip on UK food market with Booker clearance
Saudi Arabia opens 3rd round of Exploration Empowerment Program
RIYADH: Saudi Arabia’s Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, has opened applications for the third round of the Exploration Empowerment Program, part of ongoing efforts to accelerate mineral exploration in the Kingdom, reduce early-stage investment risks, and attract high-quality investment from local and international mining companies.
The third round of the Exploration Empowerment Program offers a comprehensive support package targeting exploration companies and mineral prospecting license holders.
The initiative aims to lower investment risks for projects and support a faster transition from prospecting to development.
"The program provides coverage of up to 70 percent of the total salaries of Saudi technical staff, such as geologists, during the first two years, increasing to 100 percent thereafter, in line with program requirements.
This support aims to develop talent, build national capabilities in mineral exploration, promote job localization, and facilitate the transfer of geological knowledge.
The application for the third round opened on Jan. 14, allowing participants to benefit from the Kingdom’s attractive investment environment, its stable legal framework, and streamlined regulatory structures, as well as integrated infrastructure that supports the transition from mineral resources to operational mines.
The ministry has set the timeline for the third round, with the application period running from Jan. 14 to March 31.
This will be followed by the evaluation, approval, and signing of agreements from April 1 to May 31, with the eligible projects set to be announced between June 1 and July 31 of the same year.
The program stages include submitting exploration data during the reimbursement and payment phase from Sept. 1 to Nov. 30, followed by technical and financial verification of work programs and approval of the disbursement of support funds in January 2027.
The exploration data will then be published on the National Geological Database in April 2027.
The ministry emphasized that the EEP focuses on supporting the exploration of strategically important minerals with national priority. It also contributes to enhancing geological knowledge by providing up-to-date data that meets international standards, helping investors make informed decisions and supporting the growth of national companies and local supply chains.
The ministry urged companies to apply early to benefit from the program’s third round, which coincided with the fifth edition of the International Mining Conference, which was held from Jan. 13 to 15.
