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Eversheds comment: The two issues key to the Tesco CRE retail deal

  • United Kingdom

    29-05-2014

    Commenting on news that Tesco and China Resources Enterprise (CRE) have reached a deal to create China's largest food retailer, Stephen Kitts, Asia managing partner at law firm Eversheds, says:

    "Tesco has identified two issues. Firstly, that you cannot ignore the rapidly growing domestic consumer market that is increasing in sophistication as personal disposable income rises. Secondly, that success in China is not guaranteed or easy to achieve and the best way forward is to work with an indigenous partner who is tuned into the ways of doing business in one of the most challenging international markets. Not surprisingly, the City has seen this as a sensible strategy and Tesco's share price has moved upwards upon the announcement."

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