OFT closed case: Completed acquisition by Tesco plc of property in Redruth (Pool) Cornwall, formerly traded by Woolworths Group plc.
Affected market: Grocery retailing
On the basis of the information available to it, the Office of Fair Trading has decided that the completed acquisition by Tesco PLC (Tesco) of property in Redruth (Pool) Cornwall, formerly traded by Woolworths Group plc (the Redruth property) does not qualify for investigation under the mergers provisions of the Enterprise Act 2002 (the Act), because the Redruth property is not an enterprise as defined in section 129 of the Act. A relevant merger situation has, therefore, not been created.
The reasons for concluding that the Redruth property is not an enterprise are summarised as follows:
- having examined the relevant contracts, we note that Tesco has acquired only the real estate (buildings and land) and has not acquired any other rights or assets such as stock, fittings, equipment, customer lists/records, supply contracts and goodwill and
- Tesco has not taken over the employees previously employed at the Redruth property by the Woolworth Group plc and the business previously carried at the site by the former owner has been discontinued.