MUMBAI, Mar 22: Shares of Trent soared almost 6 per cent today after British retail major Tesco formed a joint venture with the Tata Group firm by buying a 50 per cent stake in Trent Hypermarket Ltd for about 85 million pounds.
The Trent stock rallied 5.89 per cent to close at Rs 1,054.30 on the BSE during a special 90-minute trading session. At the National Stock Exchange, Trent gained 4.95 per cent to Rs 1,049.15.
“Following its previous announcement and receipt of approval from the Indian Foreign Investment Promotion Board, Tesco has entered into an agreement with Trent Ltd, a part of the Tata Group, to form a 50:50 joint venture in Trent Hypermarket Ltd (THL),” the company had said yesterday.
THL operates the Star Bazaar retail business in India. Tesco’s investment will be about 85 million pounds, it added.
Last December, Trent and Tesco had announced they sought regulatory approval to enter into a partnership where each would own an equal stake in THL, owned by the Tatas.
Tesco became the first global retailer to apply for multi-brand retailing in India after the Government allowed 51 per cent FDI in the segment in September 2012. (AGENCIES)
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