M & A Tracker - February 2015

Tata-Tesco JV plans over $40 million (Rs 250 crore) investment to open more stores

Trent Hypermarket — the equally owned JV between the Tata Group and UK's Tesco — plans to invest Rs 250 crore as the only Indian multi-brand retailer with foreign investment aims to open more stores. Trent's board has been authorized to raise up to Rs 250 crore via loans, guarantees, securities or by way of subscriptions. In December 2013, the previous Congress-led government had approved Tesco's application to invest approximately$110 million in the joint venture. Trent intends to add another five hypermarkets in 2015 to the dozen outlets it already has, but the main focus is on opening smaller convenience stores. The previous government allowed up to 51% foreign holding in multi-brand retail in late 2012 and said states can make the decision on whether or not to allow such outlets in their territories.