Tesco has entered into an agreement with Aeon, a large retail group in Japan.
Tesco will exit Japan in a two stage process. In the first phase Tesco will sell 50% of its shares in Tesco Japan to Aeon for a nominal sum.
This will result in the formation of a joint venture with Aeon. As part of this, Tesco will invest a further £40m as a joint venture partner to finance further restructuring, after which Tesco will have no further financial exposure to the Japanese business or its operations.
Philip Clarke, CEO of Tesco, said: "I thank our colleagues in Japan, who have done an excellent job for the business – in particular over recent months.
"We are very pleased to announce this deal with Aeon and are confident that this will deliver the best outcome for our staff, for our customers in Japan and for our shareholders."
Completion of this transaction is subject to usual regulatory approval.
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