Tesco Completes Joint Venture Arrangement With China Resources Enterprise

by Benson Agoha

 

Tesco has completed the establishment of a Joint Venture with Chinese Chain, China Resoursces Enterprise.

 

A Tesco News release today said, "following it's previous announcement and subsequent confirmation of the satisfaction of all conditions, Tesco has completed the formation of a Joint Venture with China Resources Enterprise, Limited (“CRE”).

 

CRE is a Hong Kong based Group that focuses on consumer businesses, including retail, beer, food and beverage, in China. It is owned by The China Resources National Corporation which holds a 51.33% stake. 

 

* China Resources Enterprise Shapping Mall, Hong Kong.

 

In a news release today, Tesco said the joint venture arragement introduced no material changes to the terms of the investment agreement as previously advised in the circular of CRE dated 25 February 2014.

 

Tesco said The Anti-Monopoly Bureau of the Chinese Ministry of Commerce (MOFCOM), approved unconditionally, the transactions contemplated by the investment agreement on 12 May 2014.

 

Tesco said the joint venture will create the leading multi-format retailer in China, and that relationship with CRE will combine Tesco's 'best-in-class' retail practices, international sourcing and multi-chanel capabilities.

 

The statement said "with CRE's strong local knowledge and brand, the joint venture will "create a business which is the largest food retailer in China."

 

Both Tesco and CRE are delighted with the joint venture.

 

Tesco's Chief Executive Officer, 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 multichannel business, offering our customers in China the best of modern retail.”

 

CRE's CEO, Hong Jie, said “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.”

CRE says it's mission is to "to become the largest consumer goods company in China". It employs around 211,000 staff.

 

Tesco employs over 500,000 people in 12 markets and say they are dedicated to providing the most compelling offer to customers.

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