Tesco is the biggest supermarket group in the UK, and is set to buy the biggest food wholesaler in the UK, Booker group for £3.7bn.
Tesco believed that by combining the two companies together it will bring more benefits to suppliers, consumers, independent retailers, colleagues, caterers, and small businesses.
The deal will also guarantee that Booker shareholders will own 16% of the combined companies.
Dave Lewis Tesco chief executive said, “This merger with Booker will enhance the growth of Tesco’s prospects by creating the UK’s leading food business with combined experts in retail, wholesale supply chain and digital.”
Mr Lewis also said the deal would not result in Tesco owning any more stores, and branded the deal a “low risk” Merger.