(Corrects story from March 20 to fix company name to Tesco Plc,
not Tesco Corp, and remove stock code TESO.O from headline)
HONG KONG, March 20 Retail-focused conglomerate
China Resources Enterprise (CRE) expects government
approval for its joint venture with British supermarket operator
Tesco Plc to come through in May, CRE's chief financial
officer said on Thursday.
CRE, which has interests ranging from beverage making to
operating supermarket chains, formed the joint venture with
Tesco last year. Under the terms of the deal, CRE agreed to
combine its nearly 3,000 mainly hypermarkets or supermarkets
across China and Hong Kong with Tesco's 131 outlets in China.
"We expect the Tesco join venture will eventually get
approval from Chinese authorities in May," CFO Frank Lai told a
"We can book in the sales from JV in third or fourth quarter
this year," he said, adding that he expected Tesco China would
turn to profit in 2 to 3 years.
(Reporting by Donny Kwok and Denny Thomas; Editing by Clarence