Tesco to merge with wholesaler Booker in £3.7bn deal

Claire Dodd

Claire Dodd

27 January 2017

The merger will 'help small businesses', Tesco and Booker said
The merger will 'help small businesses', Tesco and Booker said

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.

Related articles

News

Tesco (hearts) Booker – Every Little Helps

Well – no-one saw that one coming.

Wine

Tesco opens Soho pop-up wine bar

Supermarket shelves clearly aren't quite as fun as the real deal, because Tesco's dipped its toe in the on-trade with the opening of a pop-up wine bar

Beer & Cider

SABMiller and AB InBev agree on deal

Talks have ended and agreements have been reached on the terms of the deal that'll see AB InBev acquire SABMiller.A new company called Newco will be f

Spirits & Cocktails

McKinley Vintners and New Generation Wines merge

UK wine businesses McKinley Vintners and New Generation Wines have agreed to merge their businesses from 1 January 2016.The new company, with its comb