Tesco has announced the purchase of a 50% stake in a 25-strong supermarket chain in China for £140m, its first buy in the Chinese market.
The deal is a joint venture with the Ting Hsin chain and ends a three-year search by the firm to gain a foothold in the Chinese market. Ting Hsin is the largest food supplier in China and owns the Hymall chain of stores, of which Tesco will have a 50% stake.
In a statement Tesco's Sir Terry Leahy said: "China is one of the largest economies in the world with tremendous forecast growth."
Hymall opened its first outlet in September 1998 and is now one of the leading operators in the country. French chain Carrefour and Wal-Mart are in the market already.
Ting Hsin serves around two million customers a week and is valued at £280m, with sales of £330m.
Tesco currently has a presence in 12 countries, including Hungary, Poland, South Korea, Taiwan and Japan.
