Tesco share price: Grocer awaits CMA decision on Booker deal

The Competition and Markets Authority (CMA) is set to unveil its provisional decision on Tesco’s (LON:TSCO) £3.7-billion takeover of Booker Group (LON:BOK) this week, The Telegraph reports. The news comes after the wholesaler said earlier this month that it expects the deal to close early next year.

Tesco’s share price has been little changed in today’s session, having inched 0.11 percent lower to 185.30p as of 10:23 BST, largely in line with losses in the broader UK market, with the benchmark FTSE 100 index currently 0.14 percent worse off at 7,494.56 points. The group’s shares have lost more than 14 percent of their value over the past year, and are down by some 10 percent in the year-to-date.

CMA to unveil decision on Booker deal

The Telegraph reported yesterday that the CMA is expected to unveil the findings of a five-month investigation of Tesco’s proposed acquisition of Booker this week, and could recommend that disposals might be needed to alleviate competition concerns. The newspaper notes that industry experts have reckoned that the sell-off of Tesco’s One Stop chain or hundreds of its Express stores could be required.

Tesco’s deal with Booker has sparked a wave of consolidation across the sector, with the Co-op striking a deal to buy Nisa. FTSE 100 peer Morrisons (LON:MRW) meanwhile has inked a wholesale supply deal with McColl’s.

Analysts on Tesco

The 16 analysts offering 12-month price targets for Tesco for the Financial Times have a median target of 189.50p on the shares, with a high estimate of 270.00p and a low estimate of 155.00p. As of October 27, the consensus forecast amongst 22 polled investment analysts covering the blue-chip group advises investors to hold their position in the company. 

As of 10:43 GMT, Monday, 30 October, Tesco PLC share price is 184.95p.