The cc found that although booker and makro can vary prices locally in response to. Booker sticks to tesco deal timetable as profits rise reuters. Oct 12, 2017 wholesaler booker said on thursday it expected its. Food wholesaler booker group is buying rival makro uk in a combined share issue and cash deal worth a total of. The cc said the merged cash and carry business would continue. Seven of bookers rivals in the wholesale sector, including spar and bestway, asked the cma to block the deal in september amid concerns that the merger could lead to price increases. Booker, the cash and carry wholesaler, has increased its firsthalf pretax profit by per cent and raised its sales targets following its. May 30, 2012 booker, the uk cash and carry wholesaler, has agreed to buy the struggling british operations of metro in a cash and shares deal that will give the german company a nearly 10 per cent stake in its. Booker group, the cash and carry chain, is to acquire makro uk, the struggling wholesale business of german retailer metro, in a. Makro and booker wholesale membership uk business forums. Booker expects tesco takeover deal to complete by 2018.
Cash and carry giant booker today moved to snap up struggling rival makro in a deal expected to add more than a million customers to its. May 30, 2012 booker ties up with makro booker group, the cash and carry chain, is to acquire makro uk, the struggling wholesale business of german retailer metro, in a. If the account has no purchases through it for a period of 2 years, it will automatically close down, you will. Bookers acquisition of makro is expected to go ahead after the competition commission cc provisionally cleared the deal today. It was confirmed on 5 march 2018 that tesco had completed its merger with booker. Tesco announces merger with cash and carry food wholesaler booker in a. Food wholesaler booker groups total sales in the 12 weeks to 27 march, including makro, rose by 1. Booker customer cards are not transferable to makro, you will have to register in each business in order to shop. Tesco and booker merger provisionally cleared by competition. The future for the bookermakro merger will be on the agenda along with many other key sector issues, at igds one day wholesaling event, 12 september, london. Latest company news for booker group stock market wire. They would own about 16% of the combined business after the merger. Booker and makro uk will improve choice, prices and service for retailers, caterers and smes throughout the uk. Your makro trade card accounts will remain open for a period of 2 years, with no activity on them.
Booker group limited is a food wholesale operator, offering branded and private label goods to. Booker is a trade only wholesaler and is not open to the general public. If you are a booker customer looking to shop at your local makro store please bring along your booker membership card to your local makro store, along with. May 30, 2012 booker, which operates 172 branches and mainly supplies caterers and local shops, said the planned acquisition of germanowned makro uk will give it a larger slice of the market for small and. Apr 24, 20 the competition commission cc has formally cleared the completed acquisition by booker group plc booker of makro holding limited makro. Booker group limited is a food wholesale operator, offering branded and private label goods to over 400,000 customers, including independent convenience stores, grocers, pubs, and restaurants. On 19 april 20, the competition commission issued its final report and cleared the transaction. Uk store numbers tesco uk large stores 730 tesco uk midsized and convenience 2,839 booker wholesale 172 makro cashandcarry 28 premier 3,358 londis 1,903.
The competition commission cc has formally cleared the completed acquisition by booker group plc booker of makro holding limited makro. Bookermakro stores are national, ensuring the majority of our members will have a local or accessible branch. Booker group director irrevocable undertaking gary hughes dated 27 january 2017. The cc found that although booker and makro can vary prices locally in. Competition commission releases bookermakro merger statement. Booker makro stores are national, ensuring the majority of our members will have a local or accessible branch. Bookermakro merger archived legal guidance lexisnexis. If you are a booker customer and want to shop at makro you will need to register with them separately. Booker owns the premier, londis and budgens brands, and is the main cash and carry wholesaler to hundreds of independent convenience grocery stores, as well as supplying several restaurant chains, including wagamama, carluccios and. Clifford chance advises booker group plc on the competition commissions clearance of its completed acquisition of makro holding limited.
In may 2012, metro group sold the thirty stores of makro in the united kingdom and all operational assets to booker group plc, in return for 9. We have concluded that booker and makro have ceased to be distinct enterprises and that a relevant merger situation has been created by the acquisition. Mar 18, 20 the competition commission cc has provisionally cleared the completed acquisition by booker group plc of makro holding limited. Clifford chances london antitrust team advised booker group. They also warned that the tesco booker deal would destroy competition and put thousands of jobs at risk. Although the combined turnover of booker and makro in their most recent financial years exceeds 5,000 million, both booker and makro generated more than twothirds of their respective eu turnover in one and the same member state, namely the uk. Booker said it was pleased that the cma has provisionally concluded that this transaction does not lessen competition. May 30, 2012 image caption booker hopes the deal to buy makro will be backed by its shareholders.
Booker operates 172 stores whilst makro has 30 stores. Tesco and booker have asked the competitions regulator to fasttrack its investigation into their proposed. Tesco said it anticipated the merger would be completed in early 2018. Makro is an international brand of warehouse clubs, also called cash and carries. Chief executive charles wilson said the company aimed to drive. Jan 27, 2017 booker is a cashandcarry wholesaler that supplies food to 120,000 independent retailers nationwide.
While the core business has continued to achieve solid growth, it is believed that sales within makro have continued to decline. Booker, which operates 172 branches and mainly supplies caterers and local shops, said the planned acquisition of germanowned makro uk will give it a larger slice of the market for small. Does a bookermakro merger spell trouble for the competition. Chief executive charles wilson said the company aimed to drive group revenue to the. Booker simplifies spa and salon management with online booking software. Wellingboroughbased booker and makro are major national wholesalers to independent retailers and caterers. It has 172 depots, plus 30 under the makro brand, where small business owners can buy. Booker likeforlike total sales excluding makro were 1. Tesco and booker merger approved by shareholders announcement dated 28 february 2018.
Cash and carry giant booker today snapped up the ailing uk arm of arch rival makro in a. Clifford chance clifford chance advises booker group plc. Watchdog refers bookers makro deal to competition commission. Jan 27, 2017 tesco has announced that it is acquiring food wholesale company, booker group, in a deal worth. Bookers total return to shareholders, made up of ordinary and special dividends, was increased by 11 percent to 8. This confirms the commissions provisional decision, which was published last month. Following the decision of 190420, this case hub has been archived and is not maintained. Booker ties up with makro booker group, the cash and carry chain, is to acquire makro uk, the struggling wholesale business of german retailer metro, in a. Tesco buys bookerin a further development in the long march of tesco towards supermarket dominance, it has purchased booker, the grocery wholesaler, for. Booker and makro are both national cashandcarry wholesalers supplying a range of food, drinks, grocery and nonfood products to independent retailers and caterers. Clifford chances london antitrust team advised booker group plc in securing competition commission clearance of its. If you are a customer in one of our branches you can set up your online account where you are able to view your recent purchases, access. Full text of the decision regarding the completed acquisition.
May 18, 2017 booker sticks to tesco deal timetable as profits rise. Tesco said it anticipated the merger would be completed in. The competition commission cc has provisionally cleared the completed acquisition by booker group plc of makro holding limited. Tesco and booker shareholders give marriage blessing reuters. Booker expects tesco takeover deal to complete by 2018 the. Makro uk operates 30 branches across the united kingdom. The competition commission cleared the anticipated acquisition on 19 april 20. Why is tesco buying budgens owner and will it affect. As we reveal this years big 30, we look at the impact of a bigger booker. Why is tesco buying booker and what does it mean for shoppers. Booker and makro overlapped in the cashandcarry wholesale supply of grocery and related nongrocery products in great britain. Bookers makro takeover is provisionally cleared by. Tescobooker merger in danger as shareholders urged to vote. Booker shareholders have been urged by a major advisory group to vote against the landmark.
In its final report published 19 april, the commission has concluded that the merged company would continue to face sufficient competition from other wholesalers. Clifford chance advises booker group plc on the competition. Shares in booker, up 23 percent this year, were flat at 199. Asda claims bookermakro deal will have negative impact. Competition commission to rule on bookermakro deal by april. Booker makro food wholesaler pub morning advertiser. Makro booker wholesaler outlet kirkby merseyside england uk sign at the entrance to a warehouse belonging to booker wholsesale. Makros uk business 30 struggling superstores, typically on industrial estates. Booker raises sales targets on makro deal financial times. Booker group is the uks largest cash and carry operator with 172 branches, comprising booker wholesale, makro, booker direct, classic drinks.
Prior to its acquisition, makro was the uk subsidiary of germanbased wholesale and retail operator metro ag metro. Ownership of the worldwide chain of stores is split between two companies. Although the combined turnover of booker and makro in their most recent financial years exceeds 5,000 million, both booker and makro generated more than twothirds. Circular to tesco shareholders and notice of the tesco general meeting dated 5 february 2018. Booker sticks to tesco deal timetable as profits rise. In may 2012, metro group sold the thirty stores of makro in the united kingdom and all operational assets to booker group plc, in return for.
Each store stocks a wide selection of products which ptas need for their catering at every. The competition and markets authority cma opened its phase 1 probe in. The competition and markets authority cma opened its phase 1 probe in may and was due to finish by 25 july. We have concluded that booker and makro have ceased to be distinct. Booker is a cashandcarry wholesaler that supplies food to 120,000 independent retailers nationwide. The confirmation of the ccs decision now means that booker can begin the integration and turnaround of the makro business, following the completion of the deal last july. Tescos 4 billion pound takeover of booker was overwhelmingly backed by shareholders of both companies on wednesday, clearing the final hurdles to the creation of a new powerhouse in britains. Booker buys metros british operations financial times. The company also founded, and was previously a sponsor of, the booker prize originally the booker mcconnell prize for literary fiction, which was established in 1968. As a result of this transaction booker and makro have ceased. The competition commission, which is currently investigating the.
Tescos 4 billion pound takeover of booker was overwhelmingly backed by shareholders of both companies on wednesday, clearing the final hurdles to the creation of a new powerhouse in britains 200. On 19 april 20, the competition commission issued its final report and cleared the transaction unconditionally. Nov 08, 2012 cash and carry operator booker groups. Discussion in general business forum started by charlieb, jul 25, 2011.
Competition commission set to clear booker makro merger. Supermarket giant says agreement will create uks leading food business. Tesco multibillion pound merger with booker will benefit. Jan 27, 2017 tesco announces merger with cash and carry food wholesaler booker in a. The competition commission has issued a statement following initial investigations into the completed acquisition by booker group plc of makro holding limited, after a referral by the office of fair trading oft in november. The oft began its inquiry into the merger in july after bookers board passed the deal at a general meeting with shareholders giving the green light. British food wholesaler booker has bought makros british activities from the german metro group in a deal worth. Bookers brands include londis, premier, budgens and manchesterbased makro. Booker group director irrevocable undertaking guy farrant dated 27 january 2017.
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