Tesco has reached a deal in its joint venture with China Resources Enterprise (CRE) which will create the largest food retailer in the country.

Tesco is expected to invest £85 million in the venture, in which it will have a 20% stake.

The new company will strengthen Tesco’s presence in China’s grocery and food market, which is worth approximately one trillion dollars every year and is expected to see 50% growth in the next three years.