By Ian Walker
LONDON-- Tesco PLC, the U.K.'s number one grocer by market share, has agreed to buy food wholesaler Booker Group PLC for GBP3.7 billion ($4.66 billion).
The supermarket chain also said Friday that it plans to restart paying dividends in fiscal 2018, reflecting the company's improved performance. It last paid a dividend in December 2014.
Tesco said the cash-and-share deal for Booker would benefit its customers and staff as well as generate value for shareholders. The companies expect to achieve pretax profit synergies of at least GBP200 million a year by the third year of completion andrevenue synergies of at least GBP25 million a year.
Booker shareholders will get 0.861 new Tesco shares and 42.6 pence in cash for each share held, giving them about a 16% share of the combined group.
Booker Chief Executive Charles Wilson and Chairman Stewart Gilliland will join the combined company's board after the deal.
Write to Ian Walker at email@example.com
(END) Dow Jones Newswires
January 27, 2017 02:47 ET (07:47 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.