Acquisition Proposal Exercise
M & A project by Ye Bai 2013 Deal number: 1339092040 Date: 30/10/2002 Acquirer: Tesco PLC Target firm: T&S Stores PLS (UK) Parties
Tesco
PLC, as UK's largest non-‐specific grocery retailer, is one of the top retailers in the world by annual sales behind Wal-‐Mart and Carrefour, has over 907 stores worldwide and employed 240,000 people across nine countries by the end of 2001. Those include large supermarkets, 'Metro' high street stores, and 'Express' convenience stores. Among those stores, 692 stores are in the UK with 48 newly opened in 2001. In 2001, Tesco performed well, they extended 24 hour stores to over 300 stores and improved availability of goods on the shelves at all times. The group’s sales for 2001 is 22,773 million pounds, rising by 11.9% and underlying pre-‐tax profits are up by 12.0%. UK market is always the core for Tesco. In 2001, the UK sales grew by 8.5% to £19,880m (2000 – £18,331m) of which 4.8% came from existing stores and 3.7% from net new stores. Besides being so successful in food retailing, Tesco also set non-‐food retailing, retailing services and international development as its long run growth strategies. It has done successfully, for example,
Tesco
PLC, as UK's largest non-‐specific grocery retailer, is one of the top retailers in the world by annual sales behind Wal-‐Mart and Carrefour, has over 907 stores worldwide and employed 240,000 people across nine countries by the end of 2001. Those include large supermarkets, 'Metro' high street stores, and 'Express' convenience stores. Among those stores, 692 stores are in the UK with 48 newly opened in 2001. In 2001, Tesco performed well, they extended 24 hour stores to over 300 stores and improved availability of goods on the shelves at all times. The group’s sales for 2001 is 22,773 million pounds, rising by 11.9% and underlying pre-‐tax profits are up by 12.0%. UK market is always the core for Tesco. In 2001, the UK sales grew by 8.5% to £19,880m (2000 – £18,331m) of which 4.8% came from existing stores and 3.7% from net new stores. Besides being so successful in food retailing, Tesco also set non-‐food retailing, retailing services and international development as its long run growth strategies. It has done successfully, for example,