Following its 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”) to create the leading multi-format retailer in China (the “Joint Venture” or “JV”).
The JV combines Tesco’s best-in-class retail practices, international sourcing and multichannel capabilities with CRE’s strong local knowledge and brand, to create a business which is the largest food retailer in China.
Philip Clarke, CEO of Tesco, 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.”
Hong Jie, CEO of CRE, 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.”