Booker and Makro merger gives customers a “better deal”

The deal has been made in exchange for new Booker shares, representing 9.99 per cent of the group's current issued share capital and a cash consideration of £15.8 million. Based on Tuesday's closing price, the last practicable date prior to the announcement, with a Booker share of 79.1p, the value of new ordinary shares to be issued is £123.9 million. Combined with the cash sum of £15.8 million, this values Makro UK at £139.7 million. Through this proposed transaction, Booker is seeking to become the UK's leading wholesaler to caterers, retailers and small and medium sized enterprises, with a wide range of food and non-food via the internet, delivery and cash and carry. Combining the two businesses, including Makro's network of 30 purpose built sites serving more than one million customers, will enable them to "further improve choice, prices and customer service." Booker CEO Charles Wilson, said: "Through working together, we will improve choice, prices and service for retailers, caterers and SMEs across the UK. The Board is confident that this collaboration will enable us to continue to generate value for shareholders." Metro Group chairman Olaf Koch, said: "In Booker, we have found the right buyer for our challenging UK business, which has shown an unsatisfying performance. Booker is really well positioned in the UK, with a great brand perception and vast experience in managing product ranges and in customer services. "Therefore we are convinced that this new set up meets all requirements for future success in the UK, while allowing Metro Group to further concentrate on countries within our strategic focus."