Tesco to stop Chinese investment

Feb 27, 2020Updated Jun 4, 20251 min read

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.

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Mei Ling Tan

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Mei Ling Tan is the Editor of Retail News Asia, where she leads the editorial team in delivering in-depth coverage of Asia’s dynamic retail landscape. With over a decade of experience in business journalism, Mei Ling is known for her sharp analysis, deep industry insights, and commitment to uncovering the stories behind Asia’s most innovative retail brands. Before joining Retail News Asia, Mei Ling held senior reporting roles at regional business publications, covering everything from consumer trends to digital transformation in retail. A graduate of the National University of Singapore with a degree in Communications and New Media, she combines journalistic integrity with a strong understanding of evolving market forces. Outside the newsroom, Mei Ling is a frequent speaker at industry panels and a mentor for young journalists.

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