Tesco announces Chinese joint venture

| February 28, 2011 | 0 Comments
Tesco announces Chinese joint venture

Retailing giant Tesco has today unveiled a new joint property venture in China, which will see it develop shopping malls, each built around one of the supermarket chain’s hypermarkets.

The supermarket giant, which is the UK’s largest, will build hypermarkets in three shopping malls – in Shenyang, Xiamen and Fuzhou.

The £170 million agreement will see Tesco invest millions of pounds and own 50% of the venture, while the other 50% will go to a consortium of Asian investors - debt will be provided by banks including Standard Chartered and the Commercial Bank of China.

Commenting on the investment, the company said: “The Lifespace shopping malls are part of Tesco’s long term strategy to invest in building a substantial business in China.”

Tesco is currently the world’s third largest retailer, behind France’s Carrefour SA and Wal-Mart Stores Inc., both of which have been operating in China for more than a decade.

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