Tesco has agreed a £155million cash offer for Dobbies Garden Centres.

Dobbies has 21 stores and is Britain's largest independent chain, producing profits of more than £2.5m over the past six months.

The £15 per share offer represented a premium of 28% to the average closing price of Dobbies shares over the one month period to May 29.

Tesco said it hopes to trade in on the increasing popularity of gardening, and environmentally friendly products.

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