China Resources Enterprise Ltd. (00291.HK) expects to book TESCO Plc into its financial results in the second half and the loss-making supermarket can become profitable in three years, top management said.
“We are confident in making TESCO turn a profit after our integration on economies of scales and synergy,” chief financial officer Frank Lai told a media briefing Thursday.
“TESCO is the sole profit-making e-commerce operator in Britain and its competitive advantage such as logistics, branding, computer system and e-commerce are appealing to us,” he said.
Lai said the deal can be completed in the second quarter and the financial reporting can be booked in the second half.
CRE plans to open more than 200 stores this year, the same as last year’s level, and this will include the integration of TESCO’s more than 130 retail stores, he said.
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