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
Carlsberg has announced the departure of its chief financial officer (CFO), Heine Dalsgaard, after six years in the position. In a statement, Carlsberg said that Dalsgaard was resigning from the post to take up the role of CFO at a private equity-backed company in a different industry.
Kellogg will split into three independent companies to focus on the snack business, Reuters reported Tuesday. The snacking portfolio will comprise the main business, while the North America cereal unit and the plant-based business will be spun off. The company is also considering a sale of the plant-based business.
The snacks giant says the acquisition will help build on its commitment to “lead the future of snacking” in key geographies worldwide. Once the transaction is completed, Mondelēz will continue to operate the Clif Bar business from its headquarters in Emeryville, California. The snack giant will also continue to manufacture Clif Bars’ products, which include Clif Bar, Luna and Clif Kid, at its facilities in Idaho and Indiana.