310 - BUSINESS LAW

Business Law
(Task 3)

Case Details
 Tesco / Spar store in Wroughton
 From:Competition and Markets Authority
 Closed:14 July 2009
 Case type:Mergers Case
 State:Closed Market
 Sector:Retail and wholesale
 Outcome:Mergers - phase 1 clearance
 Affected market: Grocery retail

Transition
 The anticipated transaction involves the acquisition by Tesco
from Capper of a grocery store (the Acquisition Store) currently
trading under the SPAR fascia and located in Wroughton, near
Swindon.
 The UK turnover of the Acquisition Store is approximately £1.9
million per annum.
 Tesco notified the transaction to the OFT by way of a Merger
Notice dated 17 June 2009.
 The unextended statutory deadline for the OFT’s decision on
reference is therefore 15 July 2009.

Jurisdiction
 As a result of this transaction Tesco and the Acquisition Store
will cease to be distinct. The parties overlap in the supply of
grocery retailing and together will account for over 25 per cent
of all grocery retailing in the UK.
 The share of supply test in section 23 of the Enterprise Act 2002
(the Act) is consequently met.
 The OFT consider that it is or may be the case that arrangements
are in progress or in consideration which, if carried into effect,
will result in the creation of a relevant merger situation.

Assessment
 In this Transaction, Tesco will acquire one single mid-size
grocery store in the village of Wroughton, near Swindon.
 Tesco and the Acquisition store concurrence in grocery retail.
 Given that the transaction represents an increase of
substantially less than 0.1 per cent to Tesco's total UK share of
supply, the OFT does not consider that the transaction raises a
significant lessening of competition at the national level.
 The OFT’s analysis of the information provided by Tesco at the
local level signal that the acquisition will not result in a
substantial decrease of competition in any local area.

Decision
 This merger will therefore not be referred to the Competition
Commission under section 33(1) of the Act

Reference
Tesco / Spar store in Wroughton 2009[Online]
<https://www.gov.uk/cma-cases/tesco-spar-
store-in-wroughton#transaction> [Accessed
On 19 May 2017]