Tesco buys wholesaler Booker for £3.7bn
The UK’s Competition and Markets Authority approved the deal by Britain’s biggest retailer; Tesco’s shares have risen 0.1%
London — Tesco, Britain’s largest retailer, tightened its hold on the nation’s food market on Wednesday when the competition regulator gave final approval for its £3.7bn ($4.95bn) takeover of wholesaler Booker. The UK’s Competition and Markets Authority (CMA) said it had concluded that the deal, first announced in January, does not raise competition concerns. Its ruling clears the way for Tesco and Booker shareholders to vote on the transaction in February and completion the following month. The Booker deal is the boldest move yet by Tesco CEO Dave Lewis, providing the supermarket group access to the faster growing "out of home" food market, given Booker’s role as a major distributor to the catering industry. Clients of Booker, the UK’s biggest wholesaler, include chains such as Wagamama, Carluccio’s, Byron and celebrity chef Rick Stein, as well as thousands of independent caterers. Booker also owns about 200 cash and carry warehouses in the UK and supplies the Budgens, Londis and F...
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