Having originally said it would publish details by the end of October, the CMA yesterday altered its administrative timetable to say the provisional findings would be available ‘early/mid November’. (More)
The unintended consequences of an unprecedented merger:
- Continued uncertainty means suppliers to Booker revert to short-term mode in terms of dealings with Booker…
- …and the rest of the wholesale sector.
- Whilst at the same time anticipating further consolidation in UK wholesale.
- i.e. reducing the possibility of prices and terms discrepancies…
- But if the deal goes ahead, be prepared to offer Tesco-Booker terms to all wholesalers.
The unintended consequences of an unprecedented merger:
- This issue is not about increased Tesco buying power (Booker would add 10% to Tesco purchases)
- The real issue is that Booker will be able to avail of Tesco buying terms, resulting in unmatchable competition for wholesalers not so privileged…
- Time for suppliers to conduct what-ifs on supplying all wholesalers on Tesco terms?
- Or watching Tesco-Booker grow at the expense of other wholesalers - same difference?
- Or other wholesalers being taken over by other mults? - almost same difference?
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