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The Grocer predicted months ago that Malcolm Walker might pull off something big but no one suspected merging with Booker. Belinda Gannaway, Tony Hurren and John Wood assess the deal
It's business as usual, say Stuart Rose and Malcolm Walker as they prepare to break the corporate ice after their near lbn merger this week - a deal that took the City and the industry with something stronger than shock.
Shareholders are promised immediate benefits in earnings enhancement. The two predict annual savings from trading synergies of L50m after a L20m outlay for the merger. Booker customers will see "enhanced ranges and product development which could include Iceland ownbrand in the freezer", Rose said. And Iceland shoppers will get a zooped up online offer.
But otherwise things will remain pretty much as they are, we're told, with both companies run as separate entities. It will be Iceland plc, but the Booker name and brand will continue. "Virtually no redundancies", no depot disposals, and no head office closure, they promise. Sceptics are not convinced.
Are they right? Is it naive to think that once the t's are crossed it will be back to the same old grindstone? Or does this deal change the nature of the Iceland and Booker business irrevocably?
There is new management in place for a start.
Stuart Rose - who cut his corporate teeth at M&S, Burton Group and Argos and is credited with putting Booker back on the road to recovery-- is no longer Mr Booker plc but Mr Iceland plc. Rose protege Charles Wilson steps in as chief executive at Booker.
And Iceland shareholders will lose their conquering hero Malcolm Walker when he moves into the back seat as non-exec chairman in a year. Booker finance director Steven Glew will also stand down after the merger process is complete.
Rose himself said he would have resigned for the sake of the deal - some change for a man who last July told The Grocer "I'm not doing what I'm doing to sell the business" - but Walker wanted him in on the act.
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