Member Article

Tesco cements Chinese joint venture

Supermarket retailer Tesco has finalised the details of its joint venture with Chinese operator - China Resources Enterprises Limited.

The deal, which was estimated by the Financial Times to have cost Tesco £345 million, will merge Tesco’s existing portfolio of some 130 stories into China Resources Enterprises portfolio - creating a business called Vanguard.

Philip Clarke, CEO of Tesco: “We’re very pleased to have completed this historic agreement. The partnership creates a strong platform in one of the world’s largest markets.

“We can now combine our strengths to build a profitable multichannel business, offering our customers in China the best of modern retail.”

Hong Jie, CEO of CRE: “We are very excited about the completion of this agreement; it also marks a major milestone for our business development.

“We believe that this partnership is one that combines the strength of both parties and enables the JV to become the leading multi-format retailer in Greater China, through improved operations, better growth and enhanced profitability.”

This was posted in Bdaily's Members' News section by Tom Keighley .