Tesco to pay €247m over accounting scandal

Tesco agreed to pay £214m (€247m) to resolve regulatory probes into a 2014 accounting scandal that prompted a boardroom house-cleaning and an overhaul of the grocer’s supplier relations in the UK.

Tesco said its UK unit will pay £129m under a deferred prosecution agreement with the UK’s Serious Fraud Office, subject to court approval, and £85m to compensate investors under a separate settlement with the Financial Conduct Authority (FCA).

The agreements come as Tesco faces growing opposition from shareholders to its £3.7bn bid for UK wholesaler Booker Group, which supplies restaurants and operates convenience stores. Schroders and Artisan Partners Asset Management, which together own 9% of Tesco, said this week that they want the grocer to focus on its recovery from the accounting scandal rather than striking out in a new direction.