Tesco is to buy Booker in a £3.7bn deal that will 'unlock new growth', the companies said in a statement this morning (Friday 27 January).

The firms said the merger would bring benefits to "consumers, independent retailers, caterers, small businesses, suppliers, colleagues and shareholders" by becoming the UK’s leading food business.

They pledged to:

• Help independent retailers, caterers and small businesses by further improving choice, price and service, with enhanced digital and delivery service options
• Delight consumers with better availability of quality food at attractive prices across retail and eating out locations
• Better serve the faster-growing ‘out of home’ food market
• Present a broader market opportunity for our suppliers, with strong growth prospects and a clear opportunity to develop better own brand and fresh ranges
• Cut food waste and increase efficiency by creating a broader, multi-channel partner who can work with producers across their full agricultural crop
• Create significant opportunities for synergies while retaining market-leading retail and wholesale expertise
• Create attractive innovation opportunities to serve customers and consumers better in a rapidly evolving market place

For independent retailers specifically, they said it would further enhance choice, price and service, enabling business customers to offer better value and quality to their consumers; improve efficiency; and allow them to utilise Tesco's delivery service. The Premier, Londis, Budgens and Family Shopper proposition will also be strengthened.

Charles Wilson, Booker chief executive officer, said: “Booker is committed to improving choice, prices and service for the independent retailers, caterers and small businesses that we are proud to serve.

"We believe that joining forces with Tesco offers the potential to bring major benefits to end consumers, our customers, suppliers, colleagues and shareholders.”

For retailer reaction to the news, click here.