TESCO COMPLETES THE ESTABLISHMENT OF JV WITH CRE

RNS Number : 2919I

Tesco PLC

29 May 2014

 

Tesco completes the establishment of joint venture with CRE

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:

"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:

"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."

Notes to Editors:

·      There have been no material changes to the terms of the investment agreement as previously advised in the circular of CRE dated 25 February 2014.

·      The Anti-Monopoly Bureau of the Chinese Ministry of Commerce (MOFCOM) approved unconditionally the transactions contemplated by the investment agreement on 12 May 2014.

Contact:

Investors: Chris Griffith [phone]

Media: Tom Hoskin [phone]

Brunswick [phone]

 

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