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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.
The Trent stock rallied 5.89 per cent to close at ₹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 ₹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, it added.
Last December, Trent and Tesco had announced they had 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.
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