Tesco, CRE Announce Joint Venture Combining Retail Operations In China

After announcing their memorandum of agreement on August 9, 2013, Tesco PLC and China Resources Enterprise, Ltd. revealed they have agreed to launch a joint venture combining their retail operations in China. Under the terms of the JV agreement, Tesco will have a 20 percent stake in the merged business, which combines the UK retailer’s retail practices, international sourcing, and digital and online commerce capabilities with CRE’s strength in local knowledge and brand. Combining Tesco’s 134 stores and its shopping mall business in China with CRE’s China Resources Vanguard business, the JV will be the largest retailer in seven of China’s eight most populated and highest-GDP provinces.