OFT limits ASDA’s expansion plans

An ideal and up-to-the-minute example of the UK’s competition policy in action as the OFT decides on Asda’s proposed takeover of 194 stores from discount retailer Netto. A great example for A2 microeconomics.

The Office for Fair Trading has been investigating ASDA’s proposed takeover of 194 stores from Danish group Netto, but has insisted they sell of 47 of those stores to rivals in order to solve competition concerns in local areas. Amelia Fletcher, the OFT’s senior director of mergers, said: “Although Asda and Netto offer somewhat different propositions for customers, the evidence from our investigation indicated that Asda did provide a significant competitive constraint on Netto in a number of local areas where they overlapped,”
For more information on the deal, see the guardian story here.