Supermarket giant Tesco has announced it is 'to create the UK’s leading food business' through a £3.7bn merger with wholesaler Booker
In a joint statement the duo said the cash and share merger would create benefits for consumers, independent retailers, caterers, small businesses, and suppliers, as well as delivering significant value to shareholders.
They added that the combined business would help independent retailers, caterers and small businesses by further improving choice, price and service, with enhanced digital and delivery service options.
Tesco CEO Dave Lewis, said: 'Tesco has made significant progress in turning around our UK retail business. This Merger with Booker will further enhance Tesco’s growth prospects by creating the UK’s leading food business with combined expertise in retail, wholesale, supply chain and digital. Wherever food is prepared and eaten –"in home" or "out of home" – we will meet this opportunity with the widest choice and best service available.'
Charles Wilson, CEO of Booker added: 'Booker is committed to improving choice, prices and service for the independent retailers, caterers and small businesses that we are proud to serve. We believe that joining forces with Tesco offers the potential to bring major benefits to end consumers, our customers, suppliers, colleagues and shareholders.'
The merger will result in Booker Shareholders owning approximately 16% of the combined group.