Conyers advises CRE on establishment of joint venture incorporated in BVI

Conyers Dill & Pearman has provided British Virgin Islands (BVI) and Cayman Islands legal advice to China Resources Enterprise (CRE) in relation to the establishment of a joint venture company incorporated in the BVI between CRE and Tesco and their respective group companies to create a multi-format retailer in China.

CRE is a company listed on the Main Board of the Hong Kong Stock Exchange focusing on consumer businesses, including retail, food and beverage in China. Tesco is a company listed on the Main Market of the London Stock Exchange and is a major retailer focusing on groceries and other retail products in various countries.

The joint venture involves, inter alia, (1) the injection by Tesco of its China-based retail assets into the joint venture in return for a 20 per cent shareholding in the joint venture and (2) the licensing to the joint venture of certain intellectual property and know-how.

Richard Hall and Angie Chu of Conyers’ Hong Kong office advised on the matter, working alongside Reed Smith Richards Butler and Freshfields Bruckhaus Deringer.