REUTERS/Neil Hall
Tesco CEO Dave Lewis.
LONDON — Supermarket Tesco on Friday announced a deal to merge with Booker, the UK’s largest wholesale food retailer.
Tesco is offering Booker shareholders 205.3p per share, representing a 12% premium on Thursday’s closing price and valuing Booker at £3.7 billion.
Tesco says in a statement: “The Combined Group will be well placed to serve the large, established ‘in home’ food market as well as the faster growing ‘out of home’ food market.”
Tesco CEO Dave Lewis says in a statement announcing the deal:
“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.”
Booker CEO Charles Wilson says in a statement:
“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.”
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