Tesco is selling its South Korean arm to a group led by private equity firm MBK Partners for $6.1bn (€5.5bn), it said yesterday, as the British supermarket retreats from foreign markets to focus on reviving its troubled domestic business.

Tesco has agreed to sell its South Korean business Homeplus in a £4.2 billion deal in the latest phase of the supermarket group’s turnaround plan.

Grocery giant Tesco unveiled its biggest ever deal today after agreeing to spend nearly £1bn (€1.25bn) on beefing up its hypermarket presence in South Korea.

Supermarket chain Tesco today said it had extended a Far East joint venture with electronics company Samsung.