Tesco completes £4 billion takeover of Booker

Retail giant Tesco has completed its £4bn takeover of Booker, the UK’s largest wholesaler, making it the same size as Sainsbury’s, Morrisons, Marks & Spencer and Ocado put together.

Tesco’s takeover of Booker makes it the same size as Sainsbury’s, Morrisons, Marks & Spencer and Ocado put together

The cash and shares deal, which was first announced last January and was originally worth £3.7bn, received court approval on Friday and is now in effect.

Last Friday Tesco’s shareholders voted to greenlight the takeover with an 83% majority, while Booker’s shareholders supported the deal with an 85% majority.

The deal was approved by the Competition Markets Authority (CMA) last December and makes Tesco the size of Sainsbury’s, Morrisons, Marks & Spencer and Ocado put together.

Following the deal, Booker has been de-listed from the London Stock Exchange and Tesco has offered 0.861 shares for every one Booker share and 42.6p in cash.

Booker’s former chief executive, Charles Wilson, has taken over as CEO of Tesco’s retail and wholesale operations in the UK and Ireland and will report to group CEO Dave Lewis. Meanwhile, Stewart Gilliland, Booker’s former chairman, will become a non-executive director of Tesco.

“I’m delighted that the shareholders of both companies have supported the merger,” Lewis said. “This merger is about growth, bringing together our complementary retail and wholesale skills to create the UK’s leading food business,” he added.