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Tesco reaches agreement with Booker in £3.7bn merger deal

ITV

The supermarket giant said the agreement will create 'the 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.

ITV News Consumer Editor Chris Choi said it raises questions over market dominance:

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."

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