The government has rejected three petitions asking it to stop the Tesco and Booker deal.
Since the merger was announced last week, three petitions aimed at blocking it have emerged online including one filed by price comparison website comparethewholesaler.com.
The petitions claim the deal will give Tesco control of its competitors’ prices, remove thousands of jobs from the food supply chain and give Tesco control over supplies to smaller retailers.
The government has rejected all three petitions on the grounds the deal is the responsibility of the CMA, not parliament or the UK government.
Comparethewholesaler.com creator Keith Robinson said: “The acquisition will in fact be paid for by the Tesco/Booker combined supplier base. Supply contracts will be renegotiated, suppliers will have no choice but to reduce their margins (or lose their contracts). and margin cuts will be made by reducing head counts, potentially reducing product ingredient quality and pack sizes. Potentially the quality of food produced in the UK will suffer. Supplier margins will be eroded, jobs will go.”
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