Tesco Slough probe: Competition Commission sets out stall

The “issues statement” released today is meant to clearly spell out the questions and areas the commission is examining, and will form the basis for hearings with Tesco and other interested parties.

Its publication follows the initial process of gathering information, views and evidence, but does not indicate that the commission has so far identified any competition concerns regarding the acquisition.

The Office of Fair Trading (OFT) first decided to refer the purchase of the Slough store to the Competition Commission in October 2004. But it suspended the referral while it tried to reach an agreement with Tesco.

The grocery multiple said it would sell the site on to a suitable rival, which would restore competition in the area, but it failed to find a buyer.

By January 2007, the OFT had “serious concerns” and called a meeting with Tesco. At that meeting, Tesco could not name a credible candidate purchaser, the OFT said.

It then set a final deadline for Tesco to propose suitable up-front purchasers and avoid a full inquiry.

When that deadline passed, the OFT finally referred the matter to the Competition Commission on 19 April 2007.