The grocer signed an agreement with Ting Hsin in 2004 for a 50 per cent stake in its wholly owned subsidiary of Ting Cao, which owns the Hymall chain of 44 hypermarkets. The retailer is hoping this deal will accelerate its growth in China.
Tesco chief executive Terry Leahy said: 'We have seen exciting growth in China since announcing the joint venture two years ago and are looking forward to the partnership entering a new phase.
'Ting Hsin continues to be a large shareholder in the business. They are a valued supplier of food products and we benefit from their unrivalled local business knowledge as we grow the Hymall business together.'
Ting Hsin chairman Wei Ying-Chiao said: 'Ting Hsin has been pleased with the joint venture and the business development of Hymall over the past two years.
'Ting Hsin is committed to remaining a shareholder of Hymall and to provide Tesco with guidance and local expertise as it gains experience in China.'
Tesco is cranking up its international expansion plans, after unveiling soaring sales in its third-quarter trading update.
A sales leap of 17.9 per cent at Tesco's overseas division in the 13 weeks to November 25 lifted group sales, excluding petrol, 10.3 per cent over the period.
The grocer also revealed plans to open more than 300 overseas stores, totalling 4.5 million sq ft (418,050 sq m), during the second half of next year - its biggest overseas opening programme so far.
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