Five numbers that explain the merger between Tesco and Londis owner Booker
This morning, Tesco announced it would be making the biggest supermarket merger in UK history and would be gobbling up wholesaler Booker Group.
Here are five key numbers that explain the landmark deal.
£3.7bn
The deal has valued Booker at £3.7bn; each Booker shareholder will get 0.861 shares and 42.6p in cash for every Booker share.
Neil Shah, director of research at Edison Group, said "With Booker onside, Tesco will have smart first mover advantage in tying up the food supply chain in the brave new world of online shopping, with Amazon the main disrupter and a pricing race to the bottom within the core grocery stores market catalysed by Lidl and Aldi, all of which makes shopper loyalty increasingly fickle."
16 per cent
The share of the merged company that will be owned by Booker's shareholders.
£200m
The current estimated cost savings, the lions share of which are expected to come from procurement and distribution costs.
£145m
Speaking to the press today, this is the figure Lewis put on how much it would cost to implement the deal.
Nine per cent
This is how far Tesco's share price has climbed today on the back of the merger news.
"The warm reaction in the market has put Tesco shares back into the positive again for 2017," said Jasper Lawler, senior market analyst at London Capital Group. "If the deal is completed, it adds to our conviction that the current share price significantly undervalues Tesco."