Shares in Tesco (LON:TSCO) have jumped in London this morning as the company completed its merger with Booker Group. The cash-and-shares deal, which was first announced a little over a year ago, was implemented by means of a court-sanctioned of arrangement.
As of 08:34 GMT, Tesco’s share price had added 1.73 percent to stand at 205.60p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.33 percent higher at 7,093.46 points. The group’s shares have added just under 10 percent to their value over the past year, as compared with a near four-percent slide in the blue-chip index.
Tesco wraps up merger
Tesco announced in a statement this morning that it had completed its merger with Booker, which was implemented with a court-sanctioned scheme of arrangement that has become effective as of today. Shares in the wholesaler have now been delisted from the London Stock Exchange. The completion of the deal came after shareholders in both companies okayed the tie-up last week.
Britain’s biggest grocer further noted that Booker boss Charles Wilson’s appointment as CEO of Tesco’s retail and wholesale operations in the UK & Ireland was effective as of today.
Analysts on blue-chip grocer
Reuters reported in its coverage of the news that analysts had said that with a market capitalisation of just under £20 billion Tesco was now bigger than the whole of rivals Sainsbury’s (LON:SBRY), Morrisons (LON:MRW), Marks & Spencer (LON:MKS) and Ocado (LON:OCDO) put together.
The 15 analysts offering 12-month price targets for Tesco for the Financial Times have a median target of 219.00p on the shares, with a high estimate of 270.00p and a low estimate of 170.00p. As of March 3, the consensus forecast amongst 20 polled investment analysts covering Britain’s biggest grocer advises investors to hold their position in the company.