Wednesday 18 December 2013

Tesco to acquire 50% stake in Trent for $110 million: Report

Tesco Plc, UK’s largest retailer, is reportedly planning to buy 50% stake in the Tata-owned Trent for $110 million. This will help Tesco to becoming the first foreign chain to invest in supermarkets in India since FDI was allowed in the retail sector last year.

The proposed partnership will operate and build on the existing portfolio of Star Bazaar stores in Maharashtra and Karnataka only, as the other two states have banned foreign investment in retail.

Further, the Tata-Tesco joint venture will not use the Tesco brand for its stores in India. It will sell various items from food to fashion-wear in Star Bazaar, Star Daily and Star Market branded outlets, with ‘A Tata and Tesco Enterprise’ tagline.

Trent is part of the Tata Group and is engaged in business of retailing. Trent acquired 76% stake in Landmark, one of the largest books and music retail chains in the India.

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