Tesco has announced it is to merge with Booker Group, the UK’s, largest wholesaler in a deal worth around €4.3bn (£3.7bn).
The merger is set consolidate Tesco’s positon as the largest supermarket chain in Britain.
In a joint statement, both companies said the deal would “create significant opportunities for synergies” and would serve to create “innovative opportunities to serve customers.”
"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,” said Dave Lewis, ceo of Tesco.
The deal will see Booker valued at 205.3 pence per share with shareholders receiving a premium of 12pc compared to the company’s share price at the close of business yesterday.
“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,” said , Charles Wilson, ceo of Booker.