Hermes joins Schroders in criticising Tesco deal

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Hermes chief executive Saker Nusseibeh has joined Schroders in criticising Tesco’s proposed £3.5bn purchase of wholesaler Booker.

Nusseibeh says the deal will hand the companies influence over 8,000 convenience stores.

“My worry is this puts too much pressure on corner stores. Too much power in the hands of any one supplier is never a good thing. In the long term there could be a backlash against them [Tesco],” he told The Times.

It follows Schroders criticism of the deal last week, which argued acquisitions often destroy shareholder value. It was signed by equities manager Nick Kirrage and head of stewardship Jessica Ground.

Hermes holds no stock in Tesco, but acts as a stewardship consultant for other investment groups and will be meeting with the supermarket giant ahead of a vote on the deal.