By Users Vindicator, Paulka on pl.wikipedia (Own work) [Public domain], via Wikimedia Commons
Today, the shareholders of Booker Group have backed the £3.7bn bid of Tesco for the wholesaler, giving Dave Lewis, the Tesco boss, the green light to create the largest food group of the United Kingdom.
Reuters reported that 83.4 percent of the investors of Booker approved of the said deal; Booker required the backing of 75 percent of votes for the merger to continue.
The shareholders of Tesco overwhelmingly supported the said deal in a separate vote, sending the shares in both Tesco and Booker upwards.
At around 1 pm, the share price of Tesco had increased by 2.5 percent to 212.4p, while the share price of Booker was up by 2.3 percent to 228.7p.
Booker is a wholesaler that also operates a series of convenience chains. Tesco is expecting that its acquisition of the company will increase its sales in the on-the-go food market.
In the merged company, the chief executive of Booker, Charlie Wilson, will become the chief executive of Tesco UK.
Last week, there were fears that shareholders might not approve the said deal, with some major advisory companies coming out against the deal. However, today’s votes will give Wilson and Lewis the confidence that they have the support of their investors as they move the group forward.