Business Activities News
- Tesco buys out China venture partner
Date: 13-Dec-2006 Sources: (Shenzhen Daily)
BRITISH supermarket operator Tesco announced yesterday an agreement to extend its partnership with Taiwan-managed Ting Hsin International Group, increasing its share from 50 percent to 90 percent.
The deal is valued at around US$350 million. The purchase of Ting Hsin's stake in a Chinese mailand-based supermarket chain, Hymall, will give the British company 'the partnership to accelerate its growth in China while continuing to benefit from Ting Hsin's local knowledge,'a Tesco Web site press release said.Hymall became a 50-50 venture in 2004 when Tesco purchased 50 percent of the chain from Ting Hsin for US$260 million.
Ting Hsin chairman Wei Ying-Chiao said in the press release that Ting Hsin is committed to remaining a shareholder of Hymall and to provide Tesco with guidance and local expertise.
A mainland-based spokeswoman for Hymall had no immediate comment, but said the company will issue a statement soon.
Hymall was established in 1997 and is one of China's largest retailers. Tesco had said earlier this year that it wanted to expand in China and already has 50 Chinese hypermarkets in collaboration with Hymall, with its biggest presence in Shanghai.
Tesco's foreign retail competitors in China include France's Carrefour and United States' Wal-Mart. The company also competes with local rivals such as Wumart, Lianhua, Beijing Jingkelong and China Resources Enterprise.
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