Final dates! Join the tutor2u subject teams in London for a day of exam technique and revision at the cinema. Learn more

In the News

Tesco acquires Booker to become UK biggest food business

Geoff Riley

29th January 2017

Tesco is spending £3.7bn in a deal to buy the UK's largest cash and carry business Booker. Actually there is much more to Booker than being an old-style wholesaler; as is customary the boards of both businesses are confident about the likely commercial synergies should be the deal be given the go-ahead by the regulators.

This is a good example of backward vertical integration as retailer Tesco acquires wholesaler and logistics businesses Booker Group. It will be the UKs biggest food business. Each Booker shareholder will receive 0.861 Tesco shares and 42.6p in cash per Booker share.

The key part to the deal seems to be Tesco's drive to increase market reach to the out of home food market. They will have have market reach across stores, Booker's national Cash & Carry network, their home/business delivery capacity and Tesco's own Click & Collect.

For Budgen-owned businesses such as Premier, Londis, Budgens and Family Shopper, there is now scope to provide Tesco banking services in store.

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.