DTI unconvinced on merger bans

Restricting mergers will not create more competition in British retailing, according to a report commissioned by the DTI.

It is most likely that the DTI will eventually have to rule on the Safeway bid battle.

In the food sector, the research concludes further national consolidation is possible, but may attract monopoly consideration unless a chain is broken up.

According to the report, Competitive Analysis of the Retail Sector in the UK, concentration at international or local level is the key concern.

'It is difficult to find situations which demonstrate that the consumer is suffering from retailer practices,' claims the report. 'Government and other studies have provided no compelling evidence.'