The proposed acquisition by J Sainsbury of 171 Somerfield stores from the Springwater bidding group was referred to the Competition Commission (CC) today by the secretary of state for trade and industry, Patricia Hewitt. Her decision was made in accordance with advice from the Office of Fair Trading (OFT).
Hewitt said: 'The OFT has advised me that there is significant prospect that this proposed acquisition may be expected to result in a substantial lessening of competition. It would lead to a substantial number of overlaps at the local level between Sainsbury and Somerfield stores. Determining the loss of competition will require a detailed assessment by the Competition Commission of each local area in which an overlap occurs.
"I have considered the OFT's advice and accept its conclusions. I am therefore referring the proposed merger to the Competition Commission so that it can be fully investigated."
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