Tesco-Booker link first mooted in 2009

Tesco and Booker first discussed combining to create a food giant in 2009, it emerged on Wednesday, as shareholders voted through the £3.7 billion merger.

In a discussion with analyst Bernstein, seen by the Evening Standard, Booker chief Charles Wilson said: “It’s kind of funny because we first had the conversation with Tesco back in 2009.”

Wilson and Tesco counterpart Dave Lewis were discussing the merits of the deal in the analyst call.

A spokeswoman for Wilson, who has run Booker since 2005, said he never discussed the possibility with Sir Terry Leahy, who was then chief executive of Tesco.

The enlarged business will have revenues of nearly £60 million, turning Tesco into a supplier to pubs, hotels and restaurants.

Wilson, who is to run Tesco’s UK business, paving the way for him eventually to succeed Lewis in the top job, said the rationale of the deal is to be a strong competitor in the food arena over the next 20 years. “This is the perfect time to put the deal together,” he added.

The supermarkets giant’s bid for Booker last January sparked a wave of consolidation including Morrisons’ tie-up with convenience retailer McColl’s and the Co-op’s £143 million takeover of corner shops chain Nisa.