Tesco and Carrefour are preparing to create a global strategic alliance in a bid to offer “even lower prices” to customers.

The alliance comes hot on the heels of the Tesco and Booker merger and the proposed merger between big four rivals Sainsbury’s and Asda, and further cements the scale of consolidation in the grocery market.

The alliance will be governed by a three-year framework and is set to be agreed within the next two months.

The grocers believe it will allow them to “improve the quality and choice of products available to their customers, at even lower prices thereby enhancing their competitiveness”.

They added that it would “strengthen” supplier relationships and “create significant opportunities for those suppliers”. Both Tesco and Carrefour will continue to work with local and national suppliers.

Tesco group chief executive Dave Lewis said: “By working together and making the most of our collective product expertise and sourcing capability, we will be able to serve our customers even better, further improving choice, quality and value.”

Carrefour chairman and chief executive Alexandre Bompard added: “This strategic alliance between Carrefour and Tesco is a major agreement as it combines the purchasing expertise of two world leaders, complementary in their geographies, with common strategies. 

“This agreement is a great opportunity to develop our two brands at the service of our customers. This international alliance further strengthens Carrefour, allowing it to reach a key milestone in the implementation of its strategy.”