By Razak Musah Baba
LONDON--Supermarket chain Tesco PLC (TSCO.LN) said Thursday it
has completed the formation of a joint venture with China Resources
Enterprise Ltd., (CRE) to create the leading multi-format retailer
in China.
The joint venture would involve CRE combining its CR Vanguard
business, which currently operates 2,986 stores across China and
Hong Kong, with Tesco China's 131 stores and shopping mall
business.
Philip Clarke, chief executive of Tesco said: "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."
In August last year, Tesco said it had entered into a memorandum
of understanding with China Resources Enterprise, adding they are
in exclusive talks to combine their Chinese retail operations to
form the leading multi-format retailer in China.
Tesco said the joint venture combines its retail practices,
international sourcing and multichannel capabilities with CRE's
strong local knowledge and brand, to create the largest food
retailer in China.
Tesco shares at 0711 GMT traded up 0.1% at 302 pence, valuing
the company at GBP24.49 billion.
-Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
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