The partnership would bring together CRE’s deep understanding of local customers, established nationwide infrastructure and proven track record as a partner with Tesco’s global retail expertise, international sourcing scale and supply chain capabilities.
The proposed joint venture would create a business with sales of some £10bn, in which CRE and Tesco’s effective interests are expected to be 80% and 20% respectively.
It would involve CRE combining its CR Vanguard business, which currently operates 2,986 stores across China and Hong Kong, with Tesco China’s 131 stores and shopping mall business.
The transaction is subject to further due diligence and agreement of final terms. There is no certainty that a transaction will occur.
Source: Tesco
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