Sarah Butler
Win luxury hampers plus Waitrose vouchers & guidebooks
Tesco is at loggerheads with regulators for the third time in a fortnight – this time over the acquisition of five Somerfield stores.The Office of Fair Trading has invited rival supermarkets to comment on Tesco’s planned acquisition of stores in Thurso, Bed-lington, Little Lever and Ramsbottom – all in the North of England – and North Hykeham in Lincolnshire, raising the prospect of an investigation into each store purchase.
Tesco now controls about 30 per cent of the UK’s grocery market and is already the main target of a Competition Commission investigation into the power of the supermarkets. The provisional findings are expected to be revealed next month.
Last week, the Competition Commission said that it had provisionally found that Tesco’s acquisition of a former Coop site in Slough had reduced competition in the area.
Tesco was ordered to stop developing the site last month while the commission carried out an investigation, the first into the acquisition of just one store.
In a report listing its provisional findings, the commission said that the purchase of the site in 2003, close to an existing 100,000 sq ft Tesco store, had “resulted in a substantial lessening of competition in the market for grocery retailing in Slough”.
Last week, Tesco was also named as one of a number of parties being investigated by the Office of Fair Trading over alleged price-fixing of dairy products.
A spokesman for Tesco said that the OFT’s interest in its acquisition of the five Somerfield stores was a “routine notification” and was not linked to the other investigations.
A decision on whether any further investigation is needed is expected to be made by October 8.
Regulators have become increasingly involved in the minutiae of supermarket transactions since the Competition Commission inquiry into the takeover of Safeway.
Tesco, Asda and J Sainsbury were all blocked from making a bid for the supermarket, which is now owned by Wm Morrison.
Morrison was forced to sell more than 50 large Safeway stores as part of its merger agreement with the commission, but the three largest chains were also blocked from buying many of those outlets, as the regulator pursued its policy of keeping at least four rival stores in each local area.
Tesco has argued that it is more important to consider competition on a national level, but the commission showed its commitment to local considerations in its decision over Slough, when it reiterated the need to maintain healthy competition within a 15-minute drive time.
Read the training tips and advice that helped our London Triathletes
Times Online's new TV show helps you make the right decisions for your pet
Read our exclusive 100 Years of Fleming and Bond interactive timeline, packed with original Times articles and reviews
The latest travel news plus the best hotels and gadgets for business travellers
Shortcuts to help you find sections and articles

Overseas contacts and local business information

Find a course, arrange a game and save money
2007
£47,995
2008
£42,945
06/2006
£40,850
Great car insurance deals online
£33,000
Macmillan Cancer Support
Central/South West
£50k
NHS
Nationwide
£
£30k OTE
Meltwater News
Nationwide
circa £70k
Central Office of Information
London
5% below developer pre-launch price!
Luxury Appts, beautiful gardens w/ Thames views
Great Homes Available on a shared Ownership Basis
Great Investment, River Views
Visit the ‘entertainment capital of the world’
at great sale prices!
Christmas Cruises
From only £995pp
APTs East Coast now from only
£2425pp.
Great travel insurance deals online
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times. Globrix Property Search - find property for sale and rent in the UK. Visit our classified services and find jobs, used cars, property or holidays. Use our dating service, read our births, marriages and deaths announcements, or place your advertisement.
Copyright 2008 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
Just when I thought I knew where I was then along comes another Thurso in the UK.
Albert Monkstone, Newtown,
I am intrigued to hear that there is also a Thurso in the north of England.
STEWART MACKAY, GLASGOW,
Talk about hit the nail on the head, bang on Charles!
Terry, Sussex,
Is the inclusion of Thurso as being in the north of England intended to inflame the passions of the SNP or merely a reflection of the fact that in your well thumbed office altas - all the pages north of Watford are now stuck together - having never been opened.
Bob Robinson, Preston, North of Watford
I had to laugh when I read this story, come over to Australia and see how our weak Competition Commission is. The two majors over here control around 85 percent of the market and now they are gunning for control of the petrol market. In New Zealand the Competition Commission refused Woolworths from Australia taking over one of the retailers on the grounds it would reduce competition. Good on them. It is common sense to say that any market that operates close to duopoly is dangerous for consumers.
Richard, Melbourne, Australia
Over the last 30 years I have had direct experience of large organisations in the IT industry acting in a predatory manner to maintain their positions and remove competition. The classic being for a large company to announce a new product which doesn't actually exist yet so that smaller companies scrap their developments on the grounds that it won't be worth competing. The new product is then quietly dropped if the market response is seen to be too small to justify further development. This stifles innovation.
Dennis, Wareham, Dorset
Mr Home puts the position very well , when obstacles are erected repeatedly to try and limit success in a free society . The competition commission might try to "make a level playing field " by concocting other forms of handicap as one does in some sports when a competitor is better than the other rivals .
Brian Lascelles
Brian Lascelles, cattistock, uk
The British have the habit of knocking the sucessful and trying to prevent them from serving their customers. If Tesco didn't provide the needs of the consumer they would be boycotted as they failed in their mission. That is why so many British inventions were exploited by companies in other countries
Robert Peake, Malaga, Spain
Why have rival supermarkets been asked to "comment" on the acquisition? Wouldn't they be rather prejudiced witnesses?
Cat, WGC,
What is the idea of prosecuting large sucessful organisations?
Microsoft, Tesco, and other huge commercial concerns all being accused of being sucessful, and being told to hand over to unsucessfull rivals the secret of their success or to stop competing with no hope rivals.
These huge concerns did NOT demands rivals stop selling when they made their way to the top.
This trend of stopping sucessful enterprises is sinister and very stupid and how many of the critics have ever been silly enough to attempt to shop in a "Corner Shop".??
Charles Horne, Chichester,