China Resources Enterprise mulls JV with Tesco on supermarkets operation

HONG KONG Thu Aug 8, 2013 8:07pm EDT

HONG KONG Aug 9 (Reuters) - China Resources Enterprise Ltd said on Friday is considering a joint venture with Britain's Tesco PLC for the operation of hypermarkets and supermarkets in China.

The Chinese conglomerate would hold about 80 percent of the joint venture, which would also be involved in convenience stores, cash and carry business and liquor stores in China. Tesco would own 20 percent of the unit, the Hong Kong-listed company said in a filing to the stock exchange.

Tesco Plc, the world's number three retailer, is set to announce on Friday an agreement to merge its operations in China with a division of state-controlled retailer China Resources Enterprise (CRE), Sky News reported on Thursday citing people close to the talks.