Tesco, the UK’s largest supermarket chain, has completed its £370 million acquisition of Booker Group, finalising the deal today. The merger, first announced in January, creates a powerful new force in the UK grocery and wholesale market, with Tesco gaining access to Booker’s network of 5,700 independent retailers.
The Competition and Markets Authority (CMA) approved the deal last month, following a six-month investigation. The regulator required Tesco to sell off 260 of its convenience stores to address competition concerns. Tesco chief executive Dave Lewis stated the deal would “create a new force in UK wholesale and will bring real benefits to independent retailers, caterers and small businesses.”
Tesco Finalises £370m Booker Takeover
Tesco has finalised its £370 million acquisition of Booker Group, creating the UK’s largest food business. The deal, first announced in January, received final approval from the Competition and Markets Authority (CMA) last month. Tesco now owns a 50% stake in the wholesaler, with the remaining 50% held by other investors.
The merger brings together Tesco’s retail operations with Booker’s wholesale business, serving around 550,000 customer outlets. Tesco CEO Dave Lewis stated the deal would create “a new force in British food.” He added it would drive growth and choice for customers, suppliers, and colleagues.
Booker’s chief executive, Charles Wilson, will lead the combined business. Wilson expressed enthusiasm about the opportunities ahead. He highlighted the potential for innovation and improved service across the supply chain.
The CMA’s approval came after a thorough investigation into the impact on competition. The regulator required Tesco to sell off 49 of its convenience stores to address concerns. These stores were sold to rival wholesaler Bestway.
The deal marks a significant shift in the UK grocery sector. Analysts suggest it could lead to further consolidation. Tesco’s move is seen as a strategic response to changing market dynamics and consumer preferences.
Supermarket Giant Completes Acquisition of Wholesaler
Tesco has completed its £370 million acquisition of wholesaler Booker Group. The deal, first announced in January, received final approval from the UK’s Competition and Markets Authority (CMA) last week.
The acquisition creates a new UK food business with combined annual revenues of over £57 billion. Tesco now owns a 50% stake in the joint venture, with Booker’s existing shareholders holding the remaining 50%.
Dave Lewis, Tesco’s Chief Executive, stated that the deal would create a “stronger, more competitive food market”. He added that the combined business would better serve both retail customers and independent retailers.
Booker’s Chief Executive, Charles Wilson, echoed Lewis’ sentiments. He said the deal would bring benefits to customers, suppliers, and colleagues. Wilson also noted that the acquisition would help Booker expand its wholesale operations.
The CMA’s approval came after a thorough investigation into the deal’s potential impact on competition. The regulator found that the merger would not result in a substantial lessening of competition.
Tesco and Booker will now focus on integrating their operations. The companies aim to complete the integration process within the next 18 months. Both firms have pledged to maintain their existing supplier relationships.
The acquisition marks Tesco’s first major deal since its £3.7 billion takeover of admin services firm, First Data, in 2019. Booker, meanwhile, has been on an acquisition spree of its own, buying up wholesalers and cash-and-carry businesses across the UK.
Tesco Secures Deal to Strengthen Market Position
Tesco has completed its £370 million acquisition of wholesale and food service business Booker Group. The deal, first announced in January, has now received final approval from the UK’s Competition and Markets Authority (CMA).
The CMA cleared the merger on Friday, subject to the divestment of 33 Booker wholesale depots. Tesco will sell these to rival wholesalers, including Bestway and Bidfood, to address competition concerns.
Tesco CEO Dave Lewis stated the deal would create a “unique partnership” between retail and wholesale. He emphasised the benefits for suppliers, customers, and colleagues. Booker CEO Charles Wilson echoed these sentiments, highlighting the opportunity to “bring the businesses together”.
The merger will see Tesco take a 35% stake in Booker, with the option to increase this to 50% in 2023. Tesco will also gain two seats on Booker’s board. The deal values Booker at £370 million, based on its share price at the time of the announcement.
Booker’s wholesale business supplies independent convenience stores, caterers, and small retailers. The company also owns retail brands such as Premier, Londis, and Budgens. Tesco aims to leverage Booker’s network to strengthen its market position and expand its wholesale operations.
The CMA’s decision follows a six-month investigation into the merger. The regulator initially raised concerns about the impact on competition in the wholesale sector. However, the proposed divestments have addressed these issues.
Booker Becomes Part of Tesco's Retail Empire
Tesco has completed its £370 million acquisition of Booker Group, creating a retail powerhouse. The deal, announced today, sees Tesco gain full control of the UK’s largest wholesaler. The acquisition was first unveiled in January 2017, following months of speculation.
Booker’s integration into Tesco’s operations is expected to create significant synergies. Tesco CEO Dave Lewis stated, “This acquisition strengthens our position in the UK retail market.” The combined entity will serve both retail and wholesale customers.
The deal has received approval from the Competition and Markets Authority (CMA). The CMA concluded that the merger would not substantially lessen competition. This green light paved the way for today’s completion.
Booker will operate as a separate entity within the Tesco Group. Tesco aims to leverage Booker’s expertise in wholesale and food service. The acquisition is part of Tesco’s strategy to diversify its revenue streams.
Tesco shareholders have overwhelmingly approved the deal. Over 99% of shareholders voted in favour of the acquisition. The deal was also approved by Booker shareholders in a separate vote.
The acquisition is expected to deliver cost savings of £150 million annually. Tesco plans to reinvest these savings into price cuts and quality improvements. The deal is seen as a strategic move to bolster Tesco’s market position.
Booker’s CEO, Charles Wilson, will join Tesco’s board as a non-executive director. Wilson will play a key role in integrating the two businesses. His extensive experience in the wholesale sector is seen as invaluable.
The deal marks a significant milestone in Tesco’s history. It is the largest acquisition since Lewis took over as CEO in 2014. The move is expected to reshape the UK retail landscape.
Wholesaler's Future Under Tesco's Leadership
Tesco has completed its £370 million acquisition of wholesale giant Booker Group. The deal, first announced in January, has now received final approval from the UK’s Competition and Markets Authority (CMA). The CMA confirmed the decision on Friday, clearing the path for Tesco to assume control of the wholesale business.
Booker’s shares will be delisted from the London Stock Exchange following today’s completion. Tesco will now hold 100% of Booker’s shares, integrating the wholesale business into its existing operations. The acquisition significantly expands Tesco’s wholesale capabilities, adding over 5,700 employees and 223 depots to its portfolio.
Tesco CEO Dave Lewis expressed confidence in the deal’s potential. “This acquisition strengthens our wholesale business and provides significant opportunities for growth,” Lewis stated. The combined entity aims to leverage synergies and enhance service offerings for customers. Analysts expect the deal to bolster Tesco’s position in the competitive UK grocery market.
Booker’s former CEO, Charles Wilson, welcomed the completion. “We are excited to join forces with Tesco and believe this partnership will drive innovation and efficiency,” Wilson said. The integration process is expected to take several months, with both companies committing to a smooth transition. The deal marks a strategic move for Tesco, enhancing its wholesale and retail operations.
Tesco’s acquisition of Booker Group for £370 million marks a significant milestone in the UK retail sector. The deal, which received regulatory approval earlier this year, aims to strengthen Tesco’s wholesale capabilities and expand Booker’s market reach. Both companies have emphasised their commitment to maintaining competition and supporting independent retailers. The integration process is expected to take several months, with the focus on leveraging synergies and enhancing supply chain efficiencies. This strategic move underscores the growing trend of consolidation in the grocery industry, as retailers seek to adapt to changing consumer demands and economic pressures.
