The UK‘s biggest supermarket has announced a landmark £3.7 billion deal to acquire the Booker group.
Booker is the UK‘s largest food wholesaler and owns convenience chains Londis and Budgens among other brands, and the milestone deal valued Booker at 205.3p a share – 12 per cent more than its closing price of 183.1p yesterday.
Booker will now hold a 16 per cent stake in the combined group, and chief executive Charlie Wilson will join the group‘s board and executive committee.
“Tesco has made significant progress in turning around our UK retail business,” Tesco boss Dave Lewis said.
READ MORE: Tesco continues turnaround with 1.8% growth
“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.”
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.”
This comes as Tesco’s market share in the supermarket sector continues to grow, with shares in the company rising by 39 per cent over the past year.