Tesco increases Far East interests
Supermarket chain Tesco today said it had extended a Far East joint venture with electronics company Samsung.
Tesco intends to take its interest in Homeplus in South Korea to 99% by 2011 after agreeing to pay about £200m (€289m) for a further 10% of shares from Samsung Corporation over the next seven years.
The original five year deal was signed in May 1999 when Tesco bought a controlling 51% stake in Homeplus from Samsung. Since then, the business has grown rapidly to become one of Korea’s leading retailers with 30 hypermarkets.
The supermarket group increased its stake in Homeplus to 81% in June 1999 and to 89% in February 2002.
Tesco’s finance and strategy director Andrew Higginson said the company was delighted to be extending the deal.
He added: “Together we have built up a world class business and are very excited about the future growth opportunities in Korea.”
In July, Tesco unveiled its first move into China, buying a 50% stake in 25-strong hypermarket chain Ting Hsin, which operates the Hymall-branded business.
The supermarket chain presently has operations in 12 countries.
