In line with its previous announcement, Tesco has today entered into an agreement with Aeon, Japan's largest retail group.
Tesco will exit Japan in a two stage process. In the first phase Tesco will sell 50% of its shares in Tesco Japan to Aeon for a nominal sum. This will result in the formation of a joint venture with Aeon. As part of this, Tesco will invest a further c.£40m as a joint venture partner to finance further restructuring, after which Tesco will have no further financial exposure to the Japanese business or its operations.
Philip Clarke, Chief Executive Officer of Tesco Plc, said: "I thank our colleagues in Japan, who have done an excellent job for the business - in particular over recent months. We are very pleased to announce this deal with Aeon today, and are confident that this will deliver the best outcome for our staff, for our customers in Japan and for our shareholders."
Completion of this transaction is subject to usual regulatory approval.
Notes for editors:
About Tesco Japan
Tesco entered Japan in 2003 through the acquisition of C2 Network, which ran stores under the Tsurakame brand. The business currently comprises 117 small stores, primarily under the Tsurakame, Tesco and Tesco Express fascias in the Greater Tokyo area.
Tesco announced its decision to sell its business in Japan in 2011.
Aeon is Japan's largest retailer with 12 core retail businesses including a general merchandise store business, supermarket business and strategic small size store business. Aeon operates over 1,200 supermarket stores across Japan. In FY2011/2012, Aeon's operating revenue and operating profit were JPY5,206.1 billion and JPY195.6 billion, respectively.
Press Tom Curry, +44(0)1992 644 645
Investors Chris Griffith, +44 (0)1992 806149
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