British multinational groceries and general merchandise retailer Tesco has sold its shares in a Chinese joint venture, ending its operations in the country.
According to Retail Gazette, the firm’s 20-per-cent shareholding in the Gain Land business has now been sold to a unit of its regional partner, Chinese state-owned conglomerate China Resources Holdings (CRH). The shares were sold for £275 million (US$356.6 million).
The share transfer, set to take effect on Friday, completes Tesco’s six-year exit strategy from China, which began when the firm merged its 131 branded stores in the country with CRH’s Vanguard outlets. CRH operates close to 3000 Vanguard locations.
Following the retreat, Tesco will focus on its core business, using the funds from the share sale for general business purposes. The firm has also announced a review of its operations in Malaysia and Thailand.