Tesco to exit Japan but only after spending £40m more
Tesco has managed to offload its troubled Japanese business for a "nominal sum" to the country's biggest retailer, but will have to commit a further £40m to the operation before its exposure ends.
The supermarket giant entered Japan in 2003 but the business has racked up trading losses of £60m over the past two years. In 2011 it announced plans to quit the country, where it has 117 small stores.
Tesco has operations in 14 countries. It typically sets itself the long-term target of becoming the number one or second-biggest player in markets overseas, but it has just a 0.1 per cent share of the Japanese market.
In a two-stage process, it is to sell half of its shares to Aeon, which has 12 core retail businesses, including a supermarket chain, for a nominal sum to create a joint venture. It will then invest an additional £40m into the joint venture to "finance further restructuring", after which it will have no further financial exposure to Japan. At an unspecified date, Tesco will sell its remaining 50 per cent stake to Aeon.
Mountain goats miraculously survive avalanche in the Alps
Skyfall's Ben Whishaw confirmed for Freddie Mercury film
A cautionary tale for ambitious would-be authors
Trenton Oldfield deportation: Boat Race protester allowed to stay in UK over fears his Indian wife would face racism in Australia
Sir Ian McKellen hits back at Damian Lewis' 'fruity actor' claims
Gurdwaras-turned-food banks: Sikh temples are catering for rise in Britain’s hungry
Teenage girl convicted of robbery after taking pre-crime selfie wielding knife
'I'm experiencing austerity as well', says Princess Michael of Kent
- 1 Dear Sir Jimmy Savile: A comedian's words of valediction to the nation's trusted uncle
- 2 Gurdwaras-turned-food banks: Sikh temples are catering for rise in Britain’s hungry
- 3 Teenage girl convicted of robbery after taking pre-crime selfie wielding knife
- 4 Newly vegan Beyoncé wears fox fur to dine in meat free restaurant
- 5 'I'm experiencing austerity as well', says Princess Michael of Kent
- < Previous
- Next >
iJobs Money & Business
£75000 - £85000 per annum + attractive benefits: Pro-Recruitment Group: Senior...
£70000 - £80000 per annum + Commission Package: Harrington Starr: Due to winni...
£60000 per annum: Harrington Starr: Support Analyst (Back Office, CRM, Sharepo...
£65000 - £80000 per annum + Excellent Bonus, Package : Harrington Starr: Busin...