Tesco and China Resources Enterprise to bid for ParknShop

22nd Aug 2013 09:17

Tesco and China Resources Enterprise are considering a partnership to bid for Hong Kong supermarket chain ParknShop.China Resources confirmed it was looking to raise debt and sell non-core assets to fund the acquisition of billionaire Li Ka-shing's business.Li's largest company, Hutchison Whampoa, may sell the grocer which is one of the two largest chains in Hong Kong's supermarket industry."We will consider to bid with Tesco; it's one of the discussions we have with them," said Frank Lai, Chief Financial Officer of China Resources.He said ParknShop is a quality asset but declined to specify how much China Resources would offer for the business.The news comes after China Resources this month announced a joint venture with Tesco that will see the UK supermarket chain merge its 131 stores in China with the Hong Kong company.The deal will spell the end of Tesco's independent operations in China where is has been shutting down stores due to falling sales.Tesco's shares rose 1.39% to 368.25p at 09:27 on Thursday. RD