Tesco Enters $554M Venture With Chinese Retail Giant

Law360, New York (October 2, 2013, 2:28 PM EDT) -- British retailer Tesco PLC will pay HK$4.3 billion ($554 million) to merge its Chinese enterprise with China Resources Enterprise Ltd., one of China's largest multiformat retailers, the company announced Wednesday, only a month after agreeing to sell off their struggling U.S. grocery chain Fresh & Easy.

The agreement calls for Tesco to first make a HK$2.325 billion cash contribution, followed by HK$1 billion at the merger's completion and another HK$1 billion on the first anniversary of completion.

The joint venture combines Tesco's retail practices, international sourcing...
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