- Tesco said it and French retailer Carrefour had formed a strategic relationship with global suppliers that would involve joint purchasing of own-brand products and goods not for re-sale.

The pact, governed by a three-year operational framework, would allow both companies to 'improve the quality and choice of products available to their customers, at even lower prices thereby enhancing their competitiveness', Tesco said.

It would also allow both companies to strengthen their relationships with their suppliers, it added.

The deal was expected to be formally agreed within the next two months.

'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,' Tesco chief executive Dave Lewis said. Story provided by