Tesco and China Resources Enterprise reach retail deal

Tesco has finalised a deal with the state-run China Resources Enterprise (CRE) to create the largest food retailer in China.

The joint venture will combine Tesco's 131 outlets in the country with CRE's almost 3,000 stores, called Vanguard.

CRE will own 80% of the new chain and Tesco will have a 20% stake.

"The partnership creates a strong platform in one of the world's largest markets," Tesco chief executive Philip Clarke said in a statement.

"We can now combine our strengths to build a profitable multichannel business, offering our customers in China the best of modern retail."