Tesco will attempt to break into the Japanese market following news of a £173 million deal to buy C Two-Network.
The chain's bid led by deputy chairman David Reid offered shareholders 3,400 yen per share (approximately 17p) and secured acceptances from the board and key managers who own 41.1 per cent of the 78-store company.
Tesco has been paying close attention to the Japanese market over a period of three years according to Reid.
The store has broken its previous formula for overseas expansion, which has focused on hypermarket operations in Asia and eastern Europe. Japan will become its 11th overseas market.
Reid said: 'We didn't fancy organic growth in building hypermarkets.' Tesco's decision to enter into Japan comes in the wake of similar moves by Wal-Mart and Carrefour – though neither move has proven successful. Following Tesco's announcement share prices fell 3/4p to 211 1/4p on fears the move could go the same way.