Fri, 27 Jan 2017 | BUSINESS SALE
UK supermarket giant Tesco is to buy food wholesaler and convenience store owner Booker Group for £3.7 billion as it steps into the restaurant and takeaway food sectors.
Booker is the UK’s largest cash-and-carry operator, supplying products including fresh and frozen food to thousands of shops, grocers, pubs and restaurants across the country.
It also owns a number of convenience store brands, including Premier, Family Shopper, Budgens and Londis.
Tesco, already the largest supermarket group in the UK, said the deal will create the "UK's leading food business". Its shares went up 10 per cent on the back of the news.
"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," 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.”
Some analysts said they thought the deal could face a challenge from competition authorities.
James Lowman, chief executive of the Association of Convenience Stores, told the BBC the deal is "hugely significant".
"Some retailers will welcome this news, others will be concerned about competing with stores supplied through the merged Booker and Tesco business, and some will be uneasy at the prospect of working in partnership with one of their biggest historical competitors."
Find retail businesses for sale.
Seeking an acquirer / strategic partner for this long-established national engineering contractor providing an extensive range of solutions, including specialised fabrication, pipework installation, steelwork and mechanical equipment.
Our client, with a legacy spanning over 35 years, has crafted an exceptional brand and market-leading business in the world of organic wines. Now, due to retirement plans, they are seeking the perfect successor to carry forward their legacy.
Over the past 15+ years, our client has built a successful business providing a range of commercial cleaning and soft services to its contracted and growing client base. Working predominantly within the commercial and industrial sector, our client ma...
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.