Tesco shareholders have approved its £3.7bn takeover bid of wholesaler Booker Group.
Around 85% of the supermarket giant’s shareholders voted in favour of the merger, it was revelaed this morning.
Booker’s shareholders also voted, with around 83% approving the merger. It needed at least 75% shareholder approval for a deal to go through.
The deal was first announced in January last year, but did not get the go-ahead from the UK’s competition authority until December.
The Competition and Markets Authority ultimately decided that the companies were sufficiently different despite concerns from rivals that the tie-up could put them out of business.
Despite gaining approval on both sides, the proposed merger prompted some shareholder advisory groups to warn against the deal.
Most recently, investors in Booker Group were told by shareholder advisory group Glass Lewis that the premium offered by Tesco reflected “a less then compelling control transaction”.
Once the deal completes, the resulting company will be one of the largest food businesses in the UK. Booker chief executive Charlie Wilson will become the UK chief executive of Tesco.
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