Supermarket chain Tesco, struggling with falling sales in the UK, has announced it will pay £40m to exit its Japanese business.
Tesco said on Monday it will sell 50pc of its shares in Tesco Japan to Aeon, the biggest retailer in that country, for a "nominal" sum.
The two companies will own the business as a joint venture, and Tesco will then put £40m into the business to pay for "restructuring".
After paying the money, "Tesco will have no further financial exposure to the Japanese business or its operations," the retailer said today.
The remaining 50pc stake will be sold to Aeon at a later date. Tesco first opened in Japan since 2003, and has 117 shops in the country, in and around Tokyo.They are small supermarkets which operate under the names Tsurakame, Tesco and Tesco Express.
The company said in August last year it was quitting the country because its business was not big enough to make it profitable.
Its market share in the country never grew beyond 1pc.The Japanese business lost an estimated £20m in the 2010/2011 financial year.
telegraph.co.uk
Tesco said on Monday it will sell 50pc of its shares in Tesco Japan to Aeon, the biggest retailer in that country, for a "nominal" sum.
The two companies will own the business as a joint venture, and Tesco will then put £40m into the business to pay for "restructuring".
After paying the money, "Tesco will have no further financial exposure to the Japanese business or its operations," the retailer said today.
The remaining 50pc stake will be sold to Aeon at a later date. Tesco first opened in Japan since 2003, and has 117 shops in the country, in and around Tokyo.They are small supermarkets which operate under the names Tsurakame, Tesco and Tesco Express.
The company said in August last year it was quitting the country because its business was not big enough to make it profitable.
Its market share in the country never grew beyond 1pc.The Japanese business lost an estimated £20m in the 2010/2011 financial year.
telegraph.co.uk
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