Supermarket chain Tesco increased its stake to 90 percent in a Chinese joint venture that owns the Hymall chain of 44 stores, the group said on Tuesday.
Tesco said the deal, which is valued at around 180 million pounds, would allow the venture known as Ting Cao to continue expanding in China while benefiting from the local knowledge of its partner, Taiwan-based Ting Hsin.
Tesco has held a 50 percent stake in Ting Cao since September 2004. Hymall was established in 1997 and is one of the largest retailers in China, where Tesco has already laid out plans for expansion.
Tesco Chief Executive Terry Leahy said, “We have seen exciting growth in China … and are looking forward to the partnership entering a new phase.”
Tesco shares rose 1.4 percent to 391 pence by 9:19 a.m. British Time, valuing the group at around 31 billion pounds.
Analyst Tim Attenborough at brokerage Exane said: “This is a sensible strategic move for quite a fair price to take control of a decent footprint in the fastest growing market.”
Attenborough said Hymall was increasing its new selling space by 35 percent a year and was opening ten new hypermarkets this year.
Tesco has piled on market share in the UK in recent years, branching out of its traditional food business into more profitable clothing, household goods and financial services as well as expanding internationally.
