Tesco is in advanced talks about a deal with prosecutors that would involve it paying a huge fine over the 2014 financial reporting scandal that saw it exaggerate its profits by more than £300m. Lawyers acting for Britain’s biggest retailer are closing in on a deferred prosecution agreement following months of discussions with the Serious Fraud Office. Sources said that a deal could be struck within weeks, although they added that there was no certainty that a final agreement would be reached. (Sky News)

Farmers, supermarkets and food suppliers have called on Theresa May to secure a free trade deal with the European Union after Brexit. Industry bosses said failure to do so could harm the UK’s supply of food and drink and lead to higher prices. The National Farmers Union (NFU), the Food and Drink Federation (FDF) and the British Retail Consortium (BRC) made the call in a joint letter. (The BBC)

Ministers are expected to resist calls for sweeping new safeguards to protect Britain’s corporate champions from overseas predators. The business secretary Greg Clark is finalising proposals for how the government should respond to takeover bids for British companies from foreign rivals. (The Times £)

Booths, the upmarket northern grocery chain, has chosen to set up shop 6,588 miles away in Malaysia rather than attempt to crack the South of England (The Telegraph). The paper also has a longer feature on the Northern retailer, asking how the first ‘outsider’ CEO is faring at Booths, the 170-year-old family-run supermarket. (The Telegraph)

Primark and British Sugar owner ABF is attempting a £60m health kick after buying two sports nutrition companies favoured by muscle men and marathon runners. (The Telegraph)

Tough new measures to tackle childhood obesity – including a restriction on supermarkets offering “deep discounts” on unhealthy foods – must be introduced, according to a committee of MPs. (The Guardian)

Confectionery firm Mars is shrinking the pack size of favourite sweets including Maltesers, M&M’s and Minstrels by up to 15% in the latest example of an industry trend that is shortchanging shoppers. (The Guardian)

Tessa Cook, co-founder of food sharing app Olio and a former boss at payday lender Wonga, is among 30 finalists in the Chivas Venture, a global $1million search to find the next generation of entrepreneurs likely to have a positive impact on the world. (The Daily Mail)

The Bank of England has called in advisers to help prepare for a possible closure of Co-operative Bank. The BofE, led by Mark Carney, has appointed advisers at Deutsche Bank to draw up contingency plans. If no sale can be agreed, Co-op bank will have to attempt to raise £750m in new capital. (The Times £)

The FT writes that the predictability of the consumer staples sector is “due for a drastic rethink”, warning that investors should be wary of sector going ex-growth as it struggles to adapt to change. (The Financial Times £)

A former adviser to Boris Johnson is plotting a £530m takeover of restaurant chain Wagamama. Financier Edi Truell is one of a handful of suitors to have made tentative approaches for the noodle bar chain in recent months. Speculation is mounting that the business will soon be put up for sale. (The Times £)

Brewdog, the craft beer company that prides itself on a “punk” ethos, has been accused of acting like “just another multinational corporate machine” after forcing a family-run pub to change its name or face legal action. (The Guardian)

Thousands of British shopkeepers are set to take a pay cut next month because of a minimum wage rise that is part of the UK government’s plan to wean the economy off low-paid work. (The Financial Times £)