Shareholders at Wellingborough–based wholesaler Booker have been asked to approve a £3.7 billion business “merger” with supermarket giant Tesco.
The deal will see Booker shareholders own approximately 16 per cent of the combined business. They will receive 0.861 Tesco shares and 42.6p in cash in a move Tesco say will create “the UK’s leading food business.”
Shareholders have been asked to approve the deal in a vote.
[pullquote]We believe that joining forces with Tesco offers the potential to bring major benefits to end consumers, our customers, suppliers, colleagues and shareholders.”[/pullquote]Charles Wilson, chief executive officer of Booker said: “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.”
Mr Wilson and Stewart Gilliland, chairman at Booker will join the new firm’s Board. Mr Wilson will also join the company’s Executive Committee.
It is hoped the merger will help to cut food waste and provide consumers with better availability of quality food at attractive prices.
Tesco chief executive 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.”