OFT closed case: Anticipated transaction by Tesco Stores Limited concerning the leasehold of the site at Fakenham Road, Drayton, Norfolk, currently trading as Budgens.
Affected market: Property leaseholds
- On the basis of the information available to it, the Office of Fair Trading has decided that the anticipated transaction by Tesco Stores Limited concerning the leasehold of the site at Fakenham Road, Drayton, Norfolk that is currently trading as Budgens does not qualify for investigation under the mergers provisions of the Enterprise Act 2002 (the Act), because the leasehold of the site 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 leasehold is not an enterprise are summarised as follows:
The acquisition by Tesco of the leasehold of the Fakenham Road site is a bare property transaction between the landlord and Tesco.
The transaction does not involve the acquisition of an on going business, since on purchasing the lease the store currently operating on the site will cease to trade.
Tesco will not acquire any tangible or intangible assets from Budgens. No stock, equipment, customer lists or records, supply contracts or good will, will be acquired from Budgens. Neither will TUPE regulations (the Transfer of Undertakings (Protection of Employment) Regulations 2006) apply to the staff currently employed by Budgens.