Tesco agrees merger with China retailer

Tesco is to merge its 131 stores in China with the second-biggest hypermarket chain in the country, ending almost a decade of independent operations as sales decline.

The UK retailer plans to form a joint venture with China Resources Enterprise Ltd that will also run supermarkets, convenience stores, and other outlets in China, Hong Kong, and Macau, according to statements from both companies.

Tesco will have a 20% stake in the tie-up with China Resources holding the remaining 80%.