Regions

UK's biggest retailer Tesco Plc said that any deals in China would be funded through a new retail venture. The new venture with state backed China Resources Enterprise Ltd. would fund any transaction that Tesco would undergo, said a Reuters report.

The UK retail giant said yesterday that it would pay HKD4.33 billion to gain 20% of a venture with China Resources. This would allow Tesco to expand its reach in the most populous nation in the world, reported Reuters.

Tesco Chief Financial Officer Laurie McIlwee said yesterday, "Any retail business that starts in China, that's either acquired or developed, will be part of the joint venture. The acquisition, if there was an acquisition, will be financed through the debt of the business because the two businesses will be brought together both cash-and debt-free so there is huge debt capacity in the combined joint venture."

In August, Hong Kong listed retail and beer giant China Resources said that it might partner with Tesco. The partnership would propose a deal to acquire billionaire Li Ka-shing's ParknShop, said a Reuters report.