The UK’s Competition and Markets Authority (CMA) has approved grocery retailer The Co-Op’s £137.5 million (US$191.7 million) takeover of retailer Nisa after finding that the merger does not give rise to competition concerns.
The CMA declared that as The Co-op operates as a groceries retailer and Nisa operates as a groceries wholesaler they do not compete head-to-head, and that competition in the retail market meant it was unlikely the merged company would raise prices.
According to the CMA report, Nisa-supplied stores would also still be free to set their own prices and decide which products to stock after the merger, meaning the merged company “would not be able to directly determine how they compete.”
It comes after The Co-op won approval for the deal from Nisa members in November despite efforts from a small group that tried to disrupt the vote.
Sheldon Mills, the CMA’s senior director of mergers, said, “Millions of people throughout the UK shop at convenience stores and supermarkets, and it is vital that they continue to have enough choice to get the best value for them.
“After careful consideration, we’ve found that there is sufficient competition in both the wholesale and retail sectors to ensure that shoppers are not worse off.”
Full Content: Telegraph
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