Tesco swoops on food supplier Booker in £3.7bn deal

Tesco has struck a deal to buy wholesaler Booker Group for £3.7bn, further extending the reach of the UK's biggest supermarket chain in the country's food industry. In Booker, Tesco is snapping up the supplier to hundreds of convenience stores that compete with Tesco's own small format shops as well as restaurant chains, including Wagamama and Byron Burger. Shares in Tesco were 10 per cent higher in early trading at 208p, while Booker shares were 15 per cent higher at 211p. The deal values Booker at 205.3p a share, or £3.7bn, a premium of 12 per cent on its closing price of 183.1p a share on January 26. Tesco said Booker shareholders would receive 42.6p in cash and 0.861 per cent in new Tesco shares, giving the latter a 16 per cent stake in the combined company. The first Anand Patel knew of the deal between Tesco and Booker Group was when his brother Hitesh texted him, writes John Murray Brown.

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