UK: Tesco agrees to buy Booker for £3.7bn

Tesco, Britain’s biggest supermarket, has reached an agreement to buy food wholesaler Booker in a £3.7 billion deal.

The grocery giant said the tie-up will create “the UK’s leading food business” and deliver significant cost savings for the combined group.

Booker is the country’s largest wholesaler and owns the Londis and Budgens convenience store brands.

The companies said the deal would bring “benefits for consumers, independent retailers, caterers, small businesses, suppliers and colleagues, as well as delivering significant value to shareholders”.

Tesco shares jumped more than 10% in morning trading as investors welcomed the news.

Tesco chief executive Dave Lewis said: “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.”

Full Content: Daily Mail

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