Tesco to inject assets, cash into China Resources' retail JV
HONG KONG Oct 2 (Reuters) - Tesco Plc will inject retail assets and HK$4.325 billion ($558 million) in cash into a hypermarket joint venture with China Resources Enterprise Ltd , the state-backed Chinese firm said on Wednesday.
China Resources will hold 80 percent of the venture, while Tesco will take 20 percent, according to a filing to the Hong Kong bourse.
The joint venture will operate hypermarkets, supermarkets, convenience stores, cash and carry businesses and liquor stores in China.
In August, China Resources signed a joint venture with Tesco in a move that would bring their combined market share close to market leader Sun Art Retail Group Ltd
China's second-largest supermarket chain also bid in August for ParknShop, Hong Kong's biggest supermarket chain controlled by tycoon Li Ka-shing, in a move analysts said would help the beer-to-retail conglomerate expand market share through a quality brand.