OFT Merger Update

Tesco PLC
24 October 2005


      OFT CLEARS TESCO ACQUISITION OF 21 FORMER BP/SAFEWAY PETROL STATIONS

The Office of Fair Trading today cleared Tesco's acquisition of 21 former BP/
Safeway petrol stations from Wm Morrison.

Tesco will now convert the stores to its popular Express convenience format
bringing lower prices as well as improved choice, range and service to more
local neighbourhoods across the country.

The deal was originally announced on 31st August 2005 and involved an offer for
30 petrol stations. As stated at the time, BP retained pre-emption rights on 12
sites and has since exercised those rights on nine of them.


                                      ENDS


Contacts:

Press:          Julie McGuckian       01992 644 645
Investors:      Chris Griffith        01992 644 800


Notes for Editors:

• The UK convenience market is valued at around £24 billion. It is a
  fragmented market with over 50,000 stores, mostly independently owned.

• Following the acquisition Tesco's share of the convenience market will
  be around 6%.

• Tesco now has around 600 Express stores in the UK.





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