Britain's biggest supermarket said it would mean "better availability of quality food at attractive prices".
Booker operates the UK's biggest cash and carry network with 200 branches, serving independent retailers, catering and small business customers, as well as national retail chains plus cinemas. It also owns convenience store chain brands Premier, Londis and Budgens, which together have nearly 5,000 sites.
NFU comment:
NFU President Meurig Raymond said: “The NFU will be examining the details of this proposed merger between Tesco and Booker and the further concentration of retail power it creates within the food supply chain to see what kind of affect it will have on farmer suppliers.
“Tesco has launched a number of positive initiatives to work with farmers such as the Tesco Sustainable Dairy Group and similar arrangements which support farmers. We would want to see these same initiatives carried through to the new business structure.
“This merger provides an opportunity for Tesco to take the best of its supply contracts into the wholesale/catering food distribution sector. There are also opportunities for Tesco to work closer with the supply chain to make better use of food waste and gain better value from its products. If they do that then they'll be putting the customer and farmer suppliers at the heart of everything they do.
“We would also like to see this new business structure apply to the principles of fair dealing, defined within the GSCOP code.
“The food produced from British farms is the bedrock of the UK’s largest manufacturing sector – food and drink, worth £108 billion to the economy and providing jobs for 3.9 million people.
"Following this merger we hope Tesco continues to back British farming, continues its support for the Red Tractor logo and builds on its British sourcing credentials within both businesses.”