With the $357 million sale of its joint venture portion to China Resources Holdings (CRH), a state-run partner, Tesco has finished its exit from China. The U.K. grocer had created the Gain Land venture with CRH in 2014, bringing together the 131 locations of the U.K. group in China with nearly 3,000 more of its partner, Reuters reported on Tuesday (Feb. 25).
Tesco’s stock was up 0.7 percent as of 8:16 a.m. GMT, and the deal is reportedly set to be concluded on Feb. 28. The stake’s disposal is said to let Tesco keep simplifying and focus on core operations for the business per the company, which reportedly noted that the proceeds would go toward general corporate purposes.
In December, Tesco indicated a further retreat from its worldwide ambitions by beginning a review of its Malaysia and Thailand operations following costly exits from the United States and Japan. A sale of its Malaysia and Thailand operations would signify that the only left international operations of Tesco besides Ireland would be its central European division, which is composed of locations in Hungary, Slovakia, Poland and the Czech Republic.
According to the report, the departure from Asia could be one of the final actions of Tesco CEO Dave Lewis.
In separate news, Tesco was taking on the competition by adding a subscription option to its Clubcard loyalty program. Clubcard helped the British grocer beat its competitors to become the U.K.’s biggest supermarket group.
In November, the firm announced it was rolling out Clubcard Plus. For a monthly charge, shoppers will be able to access 10 percent off two big shops up to £200 each; double data on a monthly contract for new and current customers of Tesco Mobile; 10 percent off shoppers’ favorite Tesco brands at all times; and exclusive access to apply for a Tesco Bank credit card without foreign exchange fees.
A shopper’s potential savings add up to more than £400 ($520) a year per news in November.