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.
Long established community pharmacy. First time on the market in 30 years. Now occupying exemplary new purpose built accommodation. Standard hours. Offers invited.
LEASEHOLD
Works closely with clients to produce interior design solutions for educational institutions, which could be marketed to more sectors.Additionally offers an array of creative media, including videos,presentations, websites, branding and full direct m...
RELOCATABLE
Unopposed health centre pharmacy. Semi-rural location. In receipt of Pharmacy Access Scheme payments. Offers invited.
LEASEHOLD
|
24
|
|
Jan
|
Hawkin’s Bazaar enters administration | ADMINISTRATION
Norwich-based novelty toy retailer Hawkin’s Bazaar has...
|
23
|
|
Jan
|
MBO at Bristol-based media training firm | MBO/MBI
Mentor Media Training has been acquired by lead consultant D...
|
22
|
|
Jan
|
Chelmsford warehouse management firm bought by software provider | BUSINESS SALE
Chelmsford-based warehouse management solutions provider Min...
Sign up to receive our acquisition alert emails to get your FREE guide
|
14
|
|
Mar
|
Outsourcing giant plans £700m asset sale | DIVISION SALE
One of the country’s largest outsourcing players, Capi...
|
19
|
|
Apr
|
Tesco selling optician business to Vision Express | BUSINESS SALE
Tesco is to sell its in-store optician business to Vision Ex...
|
20
|
|
Jun
|
Tesco speculated to be selling coffee shop chain Harris + Hoole | DIVISION SALE
With the sale of the Dobbies Garden Centres chain announced ...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources