Tesco becomes the largest food group in the UK after swooping a deal to buy wholesaler Booker for £3.7bn. Following the procurement of Bookers, the supermarket giant expects to achieve a combined run-rate of a minimum of £200m a year by the end of the third year of acquiring. It has also announced that Booker CEO Charles Wilson will join the combined board and executive committee.
Tesco in a press statement asserted that takeover would bring good for consumers, small business, workers, retailers as well as the company shareholders. Booker shareholders will receive 0.861 new Tesco shares and 42.6p in cash per share. The company also announced that it would “delight consumers with better availability of quality food at attractive prices across retail and eating out locations”.
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 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.”