Tesco completes formation of joint venture with China Resources Enterprise to create leading multi-format retailer; new business will be largest food retailer in China

CHESHUNT, England , May 29, 2014 (press release) – Following its previous announcement and subsequent confirmation of the satisfaction of all conditions, Tesco has completed the formation of a Joint Venture with China Resources Enterprise, Limited (“CRE”) to create the leading multi-format retailer in China (the “Joint Venture” or “JV”).

The JV combines Tesco’s best-in-class retail practices, international sourcing and multichannel capabilities with CRE’s strong local knowledge and brand, to create a business which is the largest food retailer in China.

Philip Clarke, CEO of Tesco:
“We’re very pleased to have completed this historic agreement. The partnership creates a strong platform in one of the world’s largest markets. We can now combine our strengths to build a profitable multichannel business, offering our customers in China the best of modern retail.”

Hong Jie, CEO of CRE:
“We are very excited about the completion of this agreement; it also marks a major milestone for our business development. We believe that this partnership is one that combines the strength of both parties and enables the JV to become the leading multi-format retailer in Greater China, through improved operations, better growth and enhanced profitability.”

Notes to Editors:

There have been no material changes to the terms of the investment agreement as previously advised in the circular of CRE dated 25 February 2014.
The Anti-Monopoly Bureau of the Chinese Ministry of Commerce (MOFCOM) approved unconditionally the transactions contemplated by the investment agreement on 12 May 2014.

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