October 2, 2013 / 1:49 AM / 4 years ago

Tesco to inject assets, cash into China Resources' retail JV

HONG KONG (Reuters) - Tesco Plc (TSCO.L) will inject retail assets and HK$4.325 billion ($558 million) in cash into a hypermarket joint venture with China Resources Enterprise Ltd (0291.HK), 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.

For a statement, click here

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 <6808.

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.

Reporting by Donny Kwok; Editing by Anne Marie Roantree and Michael Urquhart

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