Tesco has announced that its £4 billion (US$5.5 billion) takeover of Booker Group has been completed, both companies said at the start of this week. The move creates a new powerhouse in Britain’s £200 billion (US$276.6 billion) a-year food market.
The cash and shares deal to combine Tesco, Britain’s biggest retailer, with Booker, the country’s largest wholesaler, received court approval on Friday March 2 and is now in effect.
The deal received regulatory approval in December and both sets of shareholders backed the plan last Wednesday, February 28.
Booker shares have now been de-listed from the London Stock Exchange. For each Booker share, Tesco offered 0.861 new Tesco shares and 42.6 pence in cash. Tesco shares closed Friday at 202 pence.
Analysts noted that with a market capitalization of just under £20bn, Tesco is now bigger than the whole of rivals Sainsbury’s, Morrisons, Marks & Spencer and Ocado put together, according to Reuters.
Charles Wilson, formerly Booker’s chief executive, takes over as CEO of Tesco’s retail and wholesale operations in the UK and Ireland reporting to group CEO Dave Lewis.
Stewart Gilliland, formerly Booker chairman, will become a non-executive director of Tesco.
Source: Food Ingredients First
Health and nutrition giant DSM is showcasing a new integrated F&B operating structure that unifies food specialties, hydrocolloids and nutritional products. Positioned as a business group, it will harness the gamut of taste, texture and health solutions to manufacturers in the F&B sector.
FoodIngredientsFirst speaks to key suppliers Corbion, Agrana Fruit and Kerry to discuss what core strategies are helping keep food businesses up-to-speed with their environmental reporting while remaining bias-free.
France banned the use of the additive in 2020, leading companies such as Lonza to launch Vcaps Plus White Opal, its first commercially-available titanium dioxide-free semi-opaque capsule for food supplements. The move followed several lobby groups urging the European Commission to prohibit TiO2.