Saturday, 19 January, 2019

Booker and Tesco shareholders approve merger

Tesco share price rallies as investors okay tie-up with Booker Booker and Tesco shareholders approve merger
Nellie Chapman | 01 March, 2018, 22:21

Just over 85 per cent of Tesco's investors approved the deal and 83 per cent of Booker shareholders voted in favour.

Leading investor advisory agencies had raised concerns about the deal.

Completion of the Merger remains subject to the satisfaction or waiver of the remaining Conditions set out in the Scheme Document, including the Court sanctioning the Scheme at the Court hearing which is expected to take place on 2 March 2018.

Tesco's £3.7bn takeover of Booker has been given the go-ahead by shareholders at the wholesale giant, signalling the start of a new empire for Tesco CEO Dave Lewis and his soon to be number two, Charles Wilson. The late Richard Cousins resigned in protest as Tesco's senior independent director in January previous year. The threshold was higher at Booker at 75 percent.

But the CMA said it was clear the two firms did not now compete head-to-head in most of their activities - such as supplying the catering sector, which accounts for 30% of Booker's business. It also owns about 200 cash and carry warehouses and supplies 120,000 retailers, including the Budgens, Londis, Premier and Family Shopper chains, which are run as franchise operations.

An initial 90-day programme would carefully bring Tesco and Booker together. "It's an important move which we will get the best out of over the next few years before we think of moving on to anything else", he said.

The Competition & Markets Authority formally gave the go-ahead in December for the deal.