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Tesco sells South Korean supermarket business

Published: 8-Sep-2015

Homeplus brand sold for $6.1bn

UK supermarket Tesco has sold its South Korean business to MBK Partners for $6.1bn – in a move said to be Asia's biggest private equity deal to date.

Homeplus is currently the second-biggest supermarket chain operating in the market. The deal will see Tesco's Homeplus supermarkets in the region transferred to MBK, enabling the troubled retailer to cut £4.2bn from its £8.5bn debt.

The chain employs 26,000 workers in the region and MBK says that it will not undertake any compulsory redundancies and aims to maintain existing working conditions. The deal is expected to complete in Q4 2015.

Dave Lewis, Chief Executive at Tesco, said: "I would like to thank all of our Homeplus colleagues for their dedication, professionalism and service to our customers, which has resulted in the creation of a great business. I am confident that the agreement we have reached with MBK Partners presents an exciting opportunity for their continued success."

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