Investor slams Tesco merger

A TOP Tesco shareholder last night attacked the supermarket giant’s plans to merge with Booker in a £3.7bn deal.

Schroder Investment Management, which owns 4.65pc of Tesco, said it remained firmly opposed to the deal because it would be bad for investors.

The comments came after leading wholesalers slammed regulators’ decision to approve the deal on Tuesday – saying it risked destroying their businesses.

A spokesman for Schroder said last night: ‘We have argued that it doesn’t matter how good a strategy is if you pay the wrong price.

‘We believe that Tesco is paying a too high a price for Booker making it very hard to create value for Tesco shareholders.’

The Competition and Markets Authority gave surprise provisional clearance to the tie-up on Tuesday.

The proposed deal would turn Britain’s biggest retailer into a major supplier to small shopkeepers, serving 125,000 independent convenience stores as well as 468,000 restaurants and pubs.