Blue Oar analyst Greg Lawless said it was a “solid acquisition”. He noted credit agencies’ cuts to Tesco’s rating because of the debt involved and that the retailer is targeting net debt of£8 billion at year-end. He said achieving that would “involve more property asset disposals and perhaps a haircut on the share buy-back programme”.
Numis said of the deal: “The multiples and metrics appear full in the extreme.”
Bernstein’s Christopher Hogbin thought the sum paid for TPF “reasonable”. He also flagged the attractions of Tesco’s international operations, which he believes are overlooked.
“Tesco’s international presence differentiates it from its UK peers and the strength of its international business differentiates it from its European peers,” he said.