Tesco and Booker Announce Merger

Tesco and Booker Group have announced a merger in a deal estimated to be worth £3.7bn.

Responding to the announcement, ACS Chief Executive James Lowman said: “The Tesco and Booker merger is a hugely significant deal that demonstrates how important independent convenience stores are to the UK retail market.  Ten years ago, pundits were forecasting the demise of independent retailers at the hands of big competitors like Tesco, so the decision by Tesco to invest in supplying those same retailers shows that the independent sector is highly relevant and sustainable.

“Convenience stores are becoming more important to consumers’ daily lives, as they look to shop little and often and to access products and services close to where they live and work.  Consolidation in the supply of goods to independent retailers has long been predicted, indeed Booker bought a major wholesale competitor in Musgrave less than two years ago.

“Some retailers will welcome this news, others will be concerned about competing with stores supplied through the merged Booker and Tesco business, and some will be uneasy at the prospect of working in partnership with one of their biggest historical competitors.  The Competition and Markets Authority will look at all the implications of this merger, and we will assist them in any way we can.”

This entry was posted by Leah on Fri, 27/01/2017 - 10:30