by Benson Agoha
Tesco has confirmed an agreement to enter the Indian market in its drive for overseas expansion.
In a press release on Friday, Tesco said in line with its earlier announcement and receipt of approval from the Indian Foreign Investment Promotion board, it had entered into an agreement with Trent Limited, a subsidiary of India's Tata Group.
The High Street grocer said it will form a 50:50 Joint Venture in Trent Hypermarket Limited (THL) which operates the Star Bazaar retail business in India.
The Joint Venture will see Tesco investment around £85 million, the statement said, adding the completion of the transaction remains subject to other necessary approvals.
Tesco said the agreement has been building up since 2008, with a wholesale supply and franchise/technical service agreement to supply merchandise and provide technical knowhow and support to THL in India.
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