
Tesco has entered into talks with partner China Resources Enterprise (CRE), regarding the acquisition of supermarket chain ParknShop, Hong Kong’s leading supermarket chain.
The ParknShop conglomerates are reportedly seeking between £1.9 billion and £2.56 billion for the supermarket chain.
Tesco this month moved to merge its Chinese business arm with CRE, which has Chinese state backing, with both companies looking to increase their market control in the former British colony, where ParknShop holds a 33 per cent market share.
Any bid from Tesco and CRE for ParknShop would face strong competition, with eight bids having already been made for the supermarket chain.
Tesco has sought to merger with larger partner CRE in order to increase growth in China, but the UK chain has so far moved slowly in the country having “adopted a more cautious stance in China" according to the chain, after failure of its Fresh & Easy venture in the U.S.
Tesco increases competitive operations against Amazon
Tesco prepares for mass dot.com store rollout