Tesco to Pay $269 Million Over U.K. Accounting Scandal
- Agreement sees Tesco avoid prosecution by Serious Fraud Office
- Grocer faces investor opposition to bid for wholesaler Booker
A Tesco logo sits on the back of a receipt at the Tesco Basildon Pitsea Extra supermarket, operated by Tesco Plc, in Basildon, U.K., on Tuesday, Dec. 1, 2015. Many European food retailers are coming to terms with persistently low inflation as well as consumers who remain frugal yet purchase food more frequently.
Photographer: Chris Ratcliffe/BloombergTesco Plc agreed to pay 214 million pounds ($269 million) to resolve regulatory probes into a 2014 accounting scandal that prompted a boardroom house-cleaning and an overhaul of the U.K. grocer’s supplier relations.
Tesco said its U.K. unit will pay 129 million pounds under a deferred prosecution agreement with the Serious Fraud Office, subject to court approval, and 85 million pounds to compensate investors under a separate settlement with the Financial Conduct Authority.