Shares in Tesco rose in early trading after the proposed deal was announced Phil Noble / ReutersTesco, the country’s biggest supermarket group, has announced a surprise £3.7 billion merger with the food wholesaler Booker. The deal, which has the unanimous backing of both boards, will create one of Britain’s largest wholesale and retail food businesses that aims to improve the quality, choice and price for customers, independent retailers, caterers and small businesses. Dave Lewis, Tesco’s chief executive, said: “This merger with Booker will further enhance Tesco’s growth prospects by creating the UK’s leading food business with combined expertise in retail, wholesale, supply chain and digital.”Under the deal Booker shareholders will receive 0.861 new Tesco shares and 42.6p in cash for each share they hold and will end up owning about 16 per cent of the combined group. Based on Tesco’s…

Source: The Times January 27, 2017 08:59 UTC