UK retailer Tesco signs deal with Aeon to exit Japan

RBR Staff Writer Published 19 June 2012

UK-based supermarket chain Tesco is set to exit the Japanese market, following an agreement with retailer Aeon.

The latest move follows ongoing attempts to remove the holdings of 117 small stores under Tsurakame, Tesco and Tesco Express banners.

Tesco will exit Japan in a two stage process. In the first phase, the retailer will sell 50% of its shares in Tesco Japan to Aeon for a nominal sum, resulting in the formation of a joint venture with Aeon.

As part of this, Tesco will invest a further ?40m as a joint venture partner to finance further restructuring, after which the chain will have no further financial exposure to the Japanese business or its operations.

Tesco chief executive officer Philip Clarke said that the deal with Aeon will deliver the best outcome for the company's staff, its customers in Japan and its shareholders.

The retailer has around 5,000 stores worldwide and employs over 500,000 people in the 14 countries.

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