Tesco completes establishment of joint venture with CRE

Tesco has finalised a deal with China Resources Enterprise to create the largest food retailer in China.

The joint venture will see Tesco combine its 131 stores in the country with nearly 3,000 outlets run by CRE.

Tesco chief executive Philip Clarke said: “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 multi-channel business, offering our customers in China the best of modern retail.”

Tesco will hold 20% of the new business while CRE will have an 80% stake.

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