Chinese retailer China Resources Enterprise (CRE) and the UK’s Tesco have finally completed the formation of their JV in China.

The JV combines Tesco’s best-in-class retail practices, international sourcing and multichannel capabilities with CRE’s strong local knowledge and brand, to create a business which is the largest food retailer in China.

“The partnership creates a strong platform in one of the world’s largest markets. We can now combine our strengths to build a profitable multichannel business, offering our customers in China the best of modern retail,” said Philip Clarke, CEO of Tesco.

As part of the agreement, CRE agreed to combine its more than 4600 stores with Tesco’s 134 stores and 19 shopping malls in mainland China.

CRE and Tesco own 80 and 20 per cent stake in the JV, respectively.

“We believe that this partnership is one that combines the strength of both parties and enables the JV to become the leading multi-format retailer in Greater China, through improved operations, better growth and enhanced profitability,” said CRE CEO Hong Jie.