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Tesco Booker merger gets green light despite investor concerns

tesco.gifTesco’s plans to merge with wholesalers Booker has been given the green light by the Competition and Markets Authority in a move due to add to the fears some analysts have for the firm.

Despite positive results in October, some investors warned that the supermarket giant was not in strong enough shape to execute the merger at present.

Hargreaves Lansdown senior analyst Laith Khalaf called the deal “a potential banana skin for management.”

“The risk is that just as the good ship Tesco is steadying, it gets blown off course by the Booker deal,” he said. “This is also not a takeover that is unanimously backed by shareholders, with a few big investors voicing their opposition to the transaction.”

Tesco shares were up 4.5 per cent by 8.30am on the back of the CMA’s ruling.

The CMA gave provisional clearance to the deal, finding that head-to-head competition in areas such as supplying the catering sector was currently limited.

The watchdog also ruled that the move was unlikely to increase prices or reduce services in locations with both a Tesco and a Booker-supplied supermarket due to the strong competition that exists in both the grocery wholesale and retail markets.


AFH Alan Hudson 700

AFH buys Colchester advice firm for £2m

Consolidator AFH has acquired Colchester-based advice firm Britton Financial. The deal is AFH’s first for the current financial year. It completed 13 deals in the previous financial year. A stock exchange announcement says the maximum purchase price is just over £2m. For the 12 months ended 31 May 2017 Britton reported profit before tax of […]


Aegon confirms timing for Cofunds transfer

Advised clients on the Cofunds platform will be moved to the upgraded Aegon platform in May next year, the business has confirmed. In an update today, Aegon says the Cofunds retail book will be migrated early in the new tax year. Aegon says the decision to move those clients at that time follows feedback from […]

Old Mutual Wealth 2014

Old Mutual sells further stake in asset management arm

Old Mutual has sold another tranche of shares in its asset management arm. The group now has just a 5.5 per cent holding in Old Mutual Asset Management as it continues to break up its business. Old Mutual had held a majority stake but halved this in March by selling $446m (£355m) worth of shares […]


Sipp provider suspended from trading on AIM

STM Group, the company that owns Sipp provider London & Colonial, has been suspended from trading on the London Stock Exchange’s AIM market. In a market update today, STM said it was suspended from trading this morning until a further announcement from the company. STM operates in countries including the UK, Jersey, Gibraltar, Malta and […]

Leading Edge June – Investment panel debate

RLAM’s asset class specialists discuss some of the findings from the panel session at our recent Investment Conference. By Rob Williams, Head of Distribution Welcome to the latest edition of Leading Edge. It has been an eventful six months since the last e-zine. The European Central Bank announced ongoing stimulus measures, while the immigration crisis in Europe threw the […]


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