Tesco and China Resources Enterprise (CRE) have come to an agreement which will see the pair create the leading multi-format retailer in China.
The joint venture agreement will bring together Tesco’s 131 retail outlets, international sourcing and multichannel capabilities with CRE's 3,000 stores, local knowledge and brand.
Under the terms of the deal, CRE will own 80 per cent of the new chain and Tesco will have a 20 per cent stake.
"We're very pleased to have completed this historic agreement. The partnership creates a strong platform in one of the world's largest markets,” said Philip Clarke, CEO of Tesco. “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, added that the deal was a “major milestone” for the business.