Tesco can start its aggressive store opening programme in Japan after gaining enough shares to complete its £139m deal to buy C Two-Network, the Tokyo-based convenience chain.

Based in and around the Tokyo area C Two-Network operates 78 stores with some wholesaling activity. Tesco said the deal will be earnings enhancing in its first full year and that C Two-Network is valued at approximately 50% of its sales.

Tesco boss Sir Terry Leahy said: “We look forward to working alongside a young and dynamic Japanese management team to further develop this innovative and profitable business.”

Tesco plans to open 10 to 20 new sites a year in the Tokyo area which it said is “a very densely populated and smaller formats work best”.

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