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30/01/17
Commenting on the day the surprise merger between Tesco and Booker was announced and the parties' confidence that they will obtain merger clearance from the CMA, the Grocer reports:

"Not everyone is as convinced the deal will sail through the competition process quite so smoothly. Independent competition solicitor Vivienne Robinson said the takeover will be the biggest case the CMA looks at this year.

""The CMA will examine if Booker does indeed have a decisive influence over the stores and to what degree any contractual arrangements give it control over the sites and what they stock,” she added.

""What regulators will be particularly concerned about is Tesco taking control of the supply chain to its downstream competitors in the smaller grocery store end of the market. It will ask what the implications are of Tesco being the distribution chain supplier to those stores and whether they could raise prices.”"

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