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LONDON - Tesco, the United Kingdom's leading food retailer, is in advanced talks to purchase a 50 percent stake in Ting Hsin International, owner of 25 hypermarkets in China, according to the Financial Times.
The deal could cost Tesco about $200 million and provide the British supermarket chain with a presence in China.
Ting Hsin, which operates under the Hymall and Le Gou banners, has 10 stores in Shanghai, the commercial center of China.
Tesco served notice in January of further aggressive growth through a new placement of shares, in an effort to raise some $1.49 billion.
According to the BBC News, Tesco already has large and extremely profitable overseas operations in southeast Asia and eastern Europe, but it hasn't yet entered the Chinese grocery market, which is primed to experience solid growth in the next few years as a rocketing economy ups living standards and increases consumer spending.