Tesco in £3.7bn merger with Booker to create 'UK's leading food business'

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Tesco has reached an agreement to merge with food wholesaler Booker in a £3.7 billion deal.

The supermarket giant said the agreement will create "the UK's leading food business" and deliver significant efficiency savings for the combined group.

Tesco chief executive Dave Lewis said: "Tesco has made significant progress in turning around our UK retail business.

"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.

"Wherever food is prepared and eaten - 'in home' or 'out of home' - we will meet this opportunity with the widest choice and best service available."

The deal values Booker at £3.7 billion, or 205.3p per share.