A giant is born as Tesco-Booker deal completes

Tesco and Booker have officially completed their merger, the companies announced this morning (March 6).

The cash and shares deal, originally worth £3.7bn when it was first announced in January 2017, was implemented through a court-sanctioned scheme of arrangement.

Tesco and Booker said the scheme was now effective after court approval last week.

Responding to the news, the Federation of Small Businesses’ national chairman Mike Cherry, said: “It’s critical that this takeover does not result in any deterioration of service for small retailers that buy from the wholesaler or create a market player that dominates.

“The CMA’s investigation over the summer has allayed fears. But we’ll be keeping an ear to the ground for any indication that smaller firms that directly compete with the supermarket giant are in any way disadvantaged.

“Done right, we recognise that there could be real benefits for small businesses from the deal – a more efficient ordering framework, lower prices, more frequent deliveries, improved food waste and better access to fresh produce.”

The new, merged company is now the size of Sainsbury’s, Morrisons, Marks & Spencer and Ocado put together, according to analysts.

The takeover is now in effect and Booker has been de-listed from the London Stock Exchange.

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