Tesco to stop Chinese investment
In this article (4)
British multinational groceries and general merchandise retailer Tesco has sold its shares in a Chinese joint venture, ending its operations in the country.
According to Retail Gazette, the firm’s 20-per-cent shareholding in the Gain Land business has now been sold to a unit of its regional partner, Chinese state-owned conglomerate China Resources Holdings (CRH). The shares were sold for £275 million (US$356.6 million).
The share transfer, set to take effect on Friday, completes Tesco’s six-year exit strategy from China, which began when the firm merged its 131 branded stores in the country with CRH’s Vanguard outlets. CRH operates close to 3000 Vanguard locations.
Following the retreat, Tesco will focus on its core business, using the funds from the share sale for general business purposes. The firm has also announced a review of its operations in Malaysia and Thailand.
Questions & Answers
Q.What specifically did Tesco sell to complete its exit from China?
What specifically did Tesco sell to complete its exit from China?
Tesco sold its 20-per-cent shareholding in the Gain Land business. This stake was acquired by a unit of its regional partner, the Chinese state-owned conglomerate China Resources Holdings (CRH).
Q.How much money did Tesco receive from selling its stake in the Chinese joint venture?
How much money did Tesco receive from selling its stake in the Chinese joint venture?
Tesco received £275 million (US$356.6 million) from the sale of its shares. These funds will be used for general business purposes, as the company plans to focus on its core operations.
Q.What is Tesco's strategy after completing its withdrawal from the Chinese market?
What is Tesco's strategy after completing its withdrawal from the Chinese market?
Following its exit from China, Tesco will focus on its core business. The firm also announced it will be reviewing its operations in Malaysia and Thailand.
Reader pulse
What does Tesco's China exit signify?
20,761 votes so far