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Tesco to buy Budgens and Londis owner, Booker Group | |
(35 minutes later) | |
The UK's biggest supermarket group, Tesco, has agreed to buy UK’s biggest food wholesaler, Booker Group, in a £3.7bn deal. | |
The firms said the deal would create the "UK's leading food business". | |
They added that combining the companies would bring benefits for "consumers, independent retailers, caterers, small businesses, suppliers, and colleagues". | |
Under the terms of the deal, Booker shareholders will end up owning about 16% of the combined group. | |
"Tesco has made significant progress in turning around our UK retail business," said Tesco chief executive Dave Lewis. | |
"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." | |
Speaking to the BBC's Today programme, Mr Lewis said he believed the deal would not face a challenge from competition authorities, as the deal would not result in Tesco owning any more stores. | |
He dubbed the deal a "low risk" merger. | |
Mr Lewis said rising prices from suppliers had played no part in the decision to sign the deal. |