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| Tesco to buy Budgens and Londis owner, Booker Group | 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 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". | The firms said the deal would create the "UK's leading food business". |
| Booker Group is the UK's largest cash and carry operator, supplying everything from baked beans to teabags to 700,000 to convenience stores, grocers, pubs and restaurants. | |
| Booker also owns the Premier, Budgens and Londis convenience-store brands. | |
| Under the terms of the deal, Booker shareholders will end up owning about 16% of the combined group. | 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. | "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. | "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." | "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. | 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. | 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. | Mr Lewis said rising prices from suppliers had played no part in the decision to sign the deal. |
| Analysis: Rob Young, BBC business reporter | |
| The tie-up between Tesco and Booker Group will create a food giant that not only sells products in supermarkets but in tens of thousands of independent retailers, some of them Tesco's rivals, and in hundreds of thousands of cafes and restaurants. | |
| The deal is likely to attract the attention of the competition authorities. | |
| In recent years, Tesco has been in crisis, losing market share in the tough retail market and selling off or closing parts of the company. | |
| Tesco has sold its South Korean arm, its Turkish business and the Giraffe restaurant chain. Today sees a change of tack for the company. | |
| Not only is it expanding again, it also plans to resume its dividend payment next year - a sure sign the company sees a brighter financial future. |