Tesco buys cashandcarry wholesaler booker economics online. As well as its wholesale business, booker also owns the. Tescos booker deal shows how supermarkets must evolve. Based on the closing price of 189p per tesco share on 26 january 2017 the last business day before the date of this announcement, the deal is worth 205. Commenting on todays announcement, dave lewis, chief executive officer of tesco said. This merger with booker will further enhance tescos growth prospects by creating the uks leading food business with combined expertise in retail, wholesale.
Wholesale giants lenders take fright over tesco swoop on booker. In fact, of course, tesco is taking over booker, but the deal values booker on paper at. Tesco hands control of uk business to booker boss charles wilson is credited with rescuing wholesaler from brink of collapse charles wilson will take over an expanded uk business that will deliver. Booker shares have now been delisted from the stock market, with over 1. Jan 27, 2017 tesco has announced that it is taking over food wholesaler booker group, creating what it says will be the uks leading food business. Tesco completes takeover of booker retail bulletin. Jun 15, 2018 tesco announced rising sales for the 10th quarter in a row in the three months to 26 may, in a sign its takeover of wholesaler booker is paying off the supermarket reported 1. Tesco s 4 billion pound takeover of booker was overwhelmingly backed by shareholders of both companies on wednesday, clearing the final hurdles to the creation of a new powerhouse in britains 200. Due to an unprecedented volume of customers, you may experience intermittent login and. Booker delisted from lse as tesco takeover is completed. There are also concerns that the growth which booker has enjoyed and which likely influenced the deal is not a permanent fixture, and that value will not be created for tescos shareholders. Tesco wins uk regulators provisional approval for booker.
Tescobooker takeover deal cleared by competition regulator. Neither booker nor tesco intends, or undertakes any obligation, to update information contained in this document, except as required by applicable law, the takeover code or other regulation. Tesco hands control of uk business to booker boss financial. Jan 27, 2017 it is looking more certain that tesco are to take over booker in a. This merger with booker will further enhance tesco s growth prospects by creating the uks leading food business with combined expertise in retail, wholesale. Today, investors gave their final nod in favour of the takeover at tescos agm on aldersgate in the city. Or why not try our online grocery shopping and delivery service. Tescos booker takeover pays off as sales rise the independent. Tesco completes booker takeover international news. Shareholders have backed tescos takeover of booker, britains largest wholesaler.
Booker is committed to taking clear, positive and inclusive. Mr wilson will take over an expanded uk business that will deliver about 80 per cent of tescos revenue, replacing matt davies, who will. The cma has referred the anticipated acquisition by tesco plc of booker group plc for an indepth phase 2 investigation under its fast track procedure at. Without taking a firmer grip, the booker deal will just keep on heading in an unwanted direction. Supermarket giant says agreement will create uks leading food business. Shock tesco takeover of booker to create food giant.
Tesco has announced that it is taking over food wholesaler booker group, creating what it says will be the uks leading food business. Booker, in contrast, was revitalised as a business under its chief executive charles wilson, and has thrived over the last decade. Advisory firm institutional shareholder services believes that. Oct 12, 2017 booker expects tesco takeover deal to complete by 2018. The cash and shares merger was implemented through a courtsanctioned scheme of arrangement where approval was given on friday. Tesco to take over food wholesaler booker farm business.
Get alerts on tesco plc when a new story is published get alerts. Tesco announced rising sales for the 10th quarter in a row in the three months to 26 may, in a sign its takeover of wholesaler booker is paying. Tesco s 4 billion pound takeover of booker has completed, both companies said on monday, creating a new powerhouse in britains 200 billion poundayear food market. Booker expects tesco takeover deal to complete by 2018.
Booker shareholders advised to vote against tesco takeover. Wholesalers set to appeal after tescos takeover of booker. Uk grocer tesco tries to navigate its takeover of wholesaler. Jun 15, 2018 tescos purchase of booker is working out even better than hoped. Since booker relisted on the stock market in june 2007, tesco.
Nov 14, 2017 tesco won provisional approval for its 3. Wholesale giants lenders take fright over tesco swoop on. Dave lewis and the estimable charles wilson and a host of city advisers had other ideas, because they have announced a merger. Jan 27, 2017 tesco is to buy wholesaler booker for. Many in the market are concerned that the tescobooker deal could make life very hard for convenience retailers and even force them out of business. Mar 03, 2017 wholesale giants lenders take fright over tesco swoop on booker lenders to palmer and harvey are concerned about the impact of tescos. Shares in booker, up 21 per cent over the last year, closed at 205. Tesco reports highest growth in seven years thanks to booker. Booker boss claims there are no plans for job losses following tesco merge. Some shareholders have been critical of the deal, claiming that tesco are being too generous in their offer.
Tesco announced rising sales for the 10th quarter in a row in the three months to 26 may, in a sign its takeover of wholesaler booker is paying off. London alliance news tesco plc on friday surprised the market with a gbp3. This column does not necessarily reflect the opinion of bloomberg lp and its owners. Tesco already has a 17% share of the convenience store sector, according to euromonitor, and the merger with booker would take that up to 27%. Booker or tesco except where otherwise expressly stated.
The cma has referred the anticipated acquisition by tesco plc of booker group plc for an indepth phase 2 investigation under its fast track procedure at the. There is also evidence that wilson is taking the right steps at tescos british arm, closing the tesco direct website and. Tesco completes four billion pound takeover of booker. Rival wholesalers are weighing up an appeal after tesco s. Investors in both companies met on wednesday to have their say on the deal, which was valued at. Mar 28, 2017 tesco boss defends booker deal, says many investors on board. Jun 29, 2017 that in turn would bolster the price for booker investors, whove seen an already meager deal premium dwindle because of tescos declining stock. Wholesaler booker, which supplies 117,000 independent retailers, has been merged with tesco. Wholesaler booker, which tesco bought last year in a takeover worth. What could the impacts of tescos takeover of booker be.
Booker, the largest wholesaler in the uk, supplies thousands of nonaffiliated stores through its network of 200 depots, as well as 3,359 premier and 52 family shopper symbol stores. The competition and markets authority cma said the deal could even increase competition in the wholesale market and reduce prices for shoppers. Booker accounts for between 10pc and 20pc of the grocery wholesale market and 18pc of the retail market while tesco accounts for 28pc of the grocery retail market, according to the cma. Booker supplies around 500,000 businesses nationwide and owns convenience store brands, londis, budgens, premier and family shopper. The company also founded, and was previously a sponsor of, the booker prize originally the bookermcconnell prize for literary fiction, which was.
Booker ceo charles wilson has stated that following the wholesalers merge with supermarket giant tesco, there are no plans for job cuts. The takeover is now in effect and booker has been delisted from the london stock exchange lse. Once the deal has closed, charles wilson, the chief executive of booker, will take control of tesco s enlarged uk business. Tesco surprised investors in january when it announced the. Tesco does not supply the catering sector to which booker makes over 30% of its sales. Tesco and booker shareholders give marriage blessing reuters. Dec 20, 2017 rival wholesalers are weighing up an appeal after tescos. Almost 84 per cent of booker shareholders have approved the proposed. Why tesco could be better off leaving booker on the shelf. Even though it said to be a merger reading between the lines it feels very much like a takeover. Tesco has made significant progress in turning around our uk retail business.
Booker expects tesco takeover deal to complete by 2018 the. As well as its wholesale business, booker also owns the premier, budgens and londis conveniencestore brands. London reuters tescos 4 billion pound takeover of booker has completed, both companies said on monday, creating a new powerhouse. Tesco aims for 2018 booker takeover as cma waves deal through. With over 3,400 stores nationwide youre sure to find a tesco near you. Why is tesco buying budgens owner and will it affect. Leading independent retailers supplied by booker have been reacting to the companys. The deal has stunned the grocery sector, but was welcomed by investors in both.
Mar 28, 2017 tesco surprised investors in january when it announced the. Even though it said to be a merger reading between the lines it. Nov 14, 2017 tesco takeover of booker gets goahead. Shareholders greenlight tescobooker takeover financial. Tesco has more than 3,000 stores across the uk, while londis and budgens owner booker is the countrys largest wholesaler.
The cma said that tesco and booker did not compete headtohead in most of their activities. Booker group limited is a food wholesale operator, offering branded and private label goods to over 400,000 customers, including independent convenience stores, grocers, pubs, and restaurants. Why is tesco buying booker and what does it mean for shoppers. In a further development in the long march of tesco towards supermarket dominance, it has purchased booker, a leading grocery wholesaler, for.