Tesco Share Discussion Threads

[ladeside] 02/2/2017 11:05

Cutting out all the utter nonsense being posted I think we should all be able to agree on two facts.

Fact 1 -- All CEO's get paid far too much.

Fact 2 -- The proposed merger will be very good for Tesco going forward.

There will also be cut and paste jobs of analysts with both positive and negative takes on the proposed merger due to their own personal positions. It's virtually impossible nowadays to get any sort of unbiased learned opinions from anyone in the City and furthermore I'm 100% certain that the deal will sail through the regulators due to political decision making in the face of Brexit and also quite simply that both institutions will have made enquiries and gained informal assurances before embarking on this journey.

Long game here is a winner imho......

[diku] 02/2/2017 10:40

Doing a deal is beneficial for the insiders salary packages/expenses....result figures get muddy for the next few years on hope for jam tomorrow whilst the insiders overall package goes up....

[portside1] 02/2/2017 10:33

The chief executive of Tesco, Dave Lewis, was paid £4.6m including a £3m bonus last year, when he stabilised the crisis-hit retailer and returned it to profit.
The UK’s largest supermarket group has experienced an upturn in sales amid the ongoing price war but the outlook for profits remains gloomy. Tesco made a pretax profit of £162m in the year to 27 February, after slumping £6.4bn into the red the year before – the biggest loss ever recorded on the UK high street.
Lewis received a salary of £1.3m, a short-term annual bonus of £2.99m, benefits worth £80,000 and a £313,000 contribution to his pension, the company’s annual report showed (pdf).
His total package of £4.6m rose from £4.1m the previous year, after he joined in September 2014 to take the reins from Philip Clarke who was sacked. His package

this year will be bigger paid millions for failure since he took the job the share price is down 64p no divs but loads of free shares for directors so they do not lose out on bad management the remuneration friends dishing out bonuses to get their bonuses

its fraud Tesco is now down 24% in the last 30 months of cancer lewis

[anony mous] 02/2/2017 09:17

Well. After all that.The S&P hasn't upgraded Tesco AND no change in outlook.All the same then.Booker makes no difference.Deal not in the bag yet.

[johnwise] 02/2/2017 08:55

S&P keeps Tesco at BB+, but outlook unchanged at 'stable'



.

[portside1] 02/2/2017 08:18

what a great deal so if Tesco had not been doing a deal share price under 100p

lewis the silent cancer ,

[portside1] 01/2/2017 13:42

info on target to 1.4b pre tax

[portside1] 01/2/2017 13:13

well for the last 3 days of Tesco trading on market it is now very clear of
MARKET MANIPULATION , BUT WITH NO REGULATIONS THAT DOES ANYTHING WE CAN JUST LOOK AND WONDER

[loganair] 01/2/2017 12:32

BY MIKE DENNIS:

The proposed merger between Tesco and Booker has been described by one retail analyst as a “game changer” for both the food retail and wholesale sectors.

Pundits estimate the deal, initially valued at £3.7bn but possibly worth more when completed, will increase Tesco’s share of the total grocery market by 2% to 30%.

For Booker’s retail customers, whether they are Premier, Budgens, Londis or Family Shopper retailers or unaffiliated shopkeepers who are cash and carry shoppers, the carrot is cheaper prices, with the merged companies having greater buying power. The deal is expected to deliver cost savings of £200m a year within three years.

Charles Wilson, chief executive at Booker, said he has spoken to “key retailers” and they have been “very supportive” of the deal.

How will the deal work?

Both the Booker and Tesco boards are recommending the merger to shareholders, but the deal might be in for a bumpy ride.

Harsha Wickremasinghe, associate at mergers and acquisitions expert Livingstone, said: “We expect a significant vocal outburst from independent retailers and the broader wholesale sector regarding the possible impact to their businesses as a result of this deal.

“The objections will be strong, the investigations searching and the battle to get this deal over the line could be brutal for everyone involved.”

If the deal goes ahead, then Wilson and Booker chairman Stewart Gilliland will join the combined group’s board.

Will the deal get the green light from the competition watchdog?

Booker and Tesco are hoping to complete the merger by the end of this year or the beginning of 2018, but an investigation by the Competitions and Markets Authority (CMA) could scupper that timetable.

Clive Black, retail analyst at city firm Shore Capital, said the CMA could have “an absolute field day” with the deal. “More to the point, the non-Booker independent and wholesale trade will be up in arms on this proposed merger and so it could be a very messy business,” he said.

There are two phases in investigating the deal open to the CMA. The first level would be to gather information from Tesco, Booker and other interested parties from which a decision could be made within 40 days. If the CMA rules a second phase for a wider investigation is needed, then it could take up to six months.

Retail consultant Scott Anan said: “I would like to think the two chief executives and their advisors are wise people and they have already done their homework.” The experience in the Far East, he said, showed the benefits of such deals. “Japan is the biggest convenience market and the independent retailers became more successful when consolidation happened,” he said.

Wilson said Booker and Tesco had taken advice on the proposed merger and they believed it was “pro-competition” and it would help strengthen independent retailers.

What will the deal mean for independents operating under the Premier, Budgens, Londis and Family Shopper fascias?

Wilson said there was “not a chance” that Booker’s independent retailers would end up running a “mini Tesco”.

He said an organisational structure for the merged companies would be revealed closer to completion of the deal. The merger, he said, was a “fantastic opportunity” because it could offer opportunities tailored to the demands of individual retailers, whether they wanted to be cash and carry customers, operate under one of four symbol fascias or become a One Stop franchisee.

Will independents get the same prices as Tesco supermarkets?

Independent retailers buying from Booker should not expect to be able to charge the same prices found in Tesco supermarkets, as even Tesco Express c-stores tend to be more expensive.

Tesco and Booker said a merger would result in enhanced buying power and cost savings, such as through combined deliveries to stores, which will all help to keep prices and promotions as competitive as possible.

What happens to own-label?

It is highly unlikely that Tesco own-label will start being sold in the independent trade as a result of the deal.

Wilson said: “When you are looking at private label, the cheapest part of the process is putting the label on. With Farm Fresh [Booker’s own-label fresh produce range], by working with Tesco we can get an even better product and better prices and keep it as Farm Fresh.”

Will Tesco Express still be able to open next door to an independent?

It is unlikely there will be any trading area agreements to prevent Tesco opening its Tesco Express convenience stores close to Premier, Londis, Budgens and Family Shopper outlets.

“Where Tesco Express goes will be down to the Tesco Express team,” said Wilson.

[loganair] 01/2/2017 12:23

By David Shrimpton:

News of the £3.7bn tie-up between Tesco and Booker came as a seismic shock to the independent convenience sector. Several days on, retailers and wholesalers are still reeling.

Booker has clearly done a good job of talking to its key retailers and convincing them of their case, and many seem genuinely supportive of the deal. The gut reaction of others was to be suspicious of a marriage with a company they have traditionally regarded as their main enemy.

Inevitably, there remain a large number of ‘unknowns̵7; when it comes to the details of the deal. How will the combined company be structured? Will Booker continue to operate as a separate entity within the group? Where will the symbol groups sit within the structure, and where will it leave One Stop Franchise?

Assuming the competition authorities eventually give the acquisition the go-ahead, my guess would be that most Booker retailers will overcome their reservations and get behind the move. Independents have long complained they can’t offer lower prices as they don’t have the buying power of a Tesco behind them. Under this deal, they will get just that.

Combine better prices with an improved fresh and chilled offer and better own-label ranges and the case could be overwhelming. After all, the fact One Stop is owned by Tesco hasn’t stopped them growing to 160 franchise stores in three years.

The other big unknown is how other wholesalers will respond. On the one hand there’s a chance to recruit disaffected stores. On the other, there’s the question of how to compete with the buying muscle of a combined Tesco and Booker.

My money would be on even further consolidation in the market.

[smartypants] 01/2/2017 11:49

Forget the chatter.. the plans of mergers.. bumper Christmas trading..
All TSCO wants to do is continue down the (artificial) slippery slide it started out down at the end of last/start of this year.... nothing else matters

[loganair] 01/2/2017 11:00

Retail market expert form the M&A advisory firm, Livingstone, Harsha Wickremasinghe, takes a look at Tesco's £3.7bn acquisition of Booker:

Last week's announcement that the UK’s largest supermarket retailer is merging with food wholesaler Booker, valuing the latter at £3.7 billion, is one that has caught us (and presumably everybody else) with genuine surprise. Has Tesco just pulled off the most audacious deal we have seen for a long time? We analyse some of the key areas of this transaction which we believe have cause for the most excitement.

The deal will create the UK’s largest food business serving both the in-home (via supermarkets / c-stores) and out-of-home (mainly via Booker’s cash & carry and delivered foodservice operations) segments – a combined market size of almost £200 billion.

At a glance:

We believe Tesco will be the biggest beneficiary of this merger, becoming the undisputed leader in the convenience retail sector:

8,300+ stores (across the Tesco Express, One Stop, Premier, Londis, Budgens and Family Shopper fascias) A convenience market share in excess of 28%, greater than the combined market share of the next two retailers – M&S Simply Food and The Co-op.

On the cusp of shifting consumer trends:

Securing such a deal at a time when consumer shopping habits continue to evolve away from larger, weekly shops towards more frequent, top-up shops at local stores (and online), is a strong move that should cement Tesco’s dominance in small format grocery retailing. Playing on the theme of convenience, Tesco could now have around 5,000 more local click-and-collect points for its products – penetrating even deeper into residential communities where the smaller Premier or Londis stores are typically located – further strengthening its omnichannel proposition.

Greater purchasing power:

The enlarged scale of the combined group also offers greater scope to negotiate better purchasing terms for products, particularly important at a time of rapidly rising input prices across the sector. This should help Tesco/Booker to become even more price competitive for their customers across both the core retail and foodservice channels. Tesco will be able to increase price pressure on its closest multiple rivals, whilst helping to mitigate the ongoing impact from the rapidly advancing discounters.

Tesco will now have a significant presence in the delivered foodservice sector – a first for a UK multiple. The potential benefits are likely to be felt greatest for the majority of catering customers and small businesses – who form the bulk of Booker’s customer base in this channel. Several potential initiatives such as lower prices, more extensive ranges and further private label development, alongside a more comprehensive delivery infrastructure, are just some of the perceived benefits these customers could enjoy. Booker’s Chef Direct business also has over £100 million sales to nationwide chains such as Byron, Wagamama and Carluccio’s – providing Tesco with an indirect presence in the buoyant casual dining market, just over six months since it sold its Giraffe restaurant chain.

Potential benefits throughout the value-chain:

There are also several other potential back-end enhancements that could be realised, the first being digital. Booker almost doubled its online sales (to £979 million) between 2011 and 2016, and we expect it to benefit significantly from Tesco’s considerable expertise in this area. Further efficiencies and enhancements to the online ordering process should enable Booker to step up its game against larger rivals Brakes and 3663. Potential integration of elements of Tesco’s banking and mobile operations (e.g. Its PayQwiq digital payment wallet) into Booker’s online platform offers an exciting range of possibilities.

A tricky road ahead:

For all the excitement surrounding the deal, it will not be an easy ride from here on. The biggest stumbling block is the Competition & Markets Authority (CMA) which is undoubtedly salivating and plotting, as we write this, how they can steamroller this deal in the sake of consumers’ interests. We also expect a significant vocal outburst from independent retailers and the broader wholesale sector regarding the possible impact to their businesses as a result of this deal. The objections will be strong; the investigations searching; and the battle to get this deal over the line could be brutal for everyone involved.

Outsmarting the competition, or peaking too early?

Regardless, the rationale behind this deal is compelling: Tesco wants to remain true to its core as a food retailer, but in light of the structural changes facing the sector (the shift to convenience and the ongoing, and faster, growth in the eating out market) it wants a slice of the broader pie to secure its long-term strategy. Tesco still has much to do in its core business – its turnaround plan is still not complete – so the jury is out as to whether the timing of the deal is right. However, if it pulls it off, this could be the trump card that flummoxes its rivals and makes Tesco back in to the unassailable force it once was.

[diku] 01/2/2017 10:59

porty will you be the one with dark glasses & a thick moustache?...I can see a picture coming!..

[wilksey1] 01/2/2017 10:18

pink sombrero and fish net tights only looking my best for mr lewis

[diku] 01/2/2017 10:11

porty...what will you be wearing so I can recognise you?...

[portside1] 01/2/2017 10:10

see you all at the meeting . end for now I have my questions ready

[portside1] 01/2/2017 10:06

Tesco employees not allowed to post . were is lake on this great deal for holders
it will take 12 years at best to get back the 3.7b its not a good deal but good for directors crooks and liars

lewis is a silent cancer

the agm will be hostile and the ceo will walk off the platform on questions

[pal44] 01/2/2017 09:48

Why is this held back everywhere it blue today?

[portside1] 01/2/2017 08:44

if they go to 185p will buy 100.0000 just for you cc

[portside1] 01/2/2017 08:43

cc I am not to bothered as I have very deep pockets and could buy 200000 money is not a problem 69 and nothing else to do . have now decided no more eu travel will only go to florida to friends and it is free

[portside1] 01/2/2017 08:31

merger details none clarity none
its a bad deal for holders but very good for the crooks running tesco

[portside1] 01/2/2017 08:29

notice lake is not posting on the fall