Carrefour, Tesco alliance to become operational in October

[PARIS] Supermarket retailers Carrefour and Tesco said on Monday that they expected their previously-announced purchasing alliance to become operational in October.

The companies first announced the tie-up in July, with French company Carrefour joining up with UK peer Tesco to form a global purchasing alliance to demand better terms from major suppliers, in the latest attempt by the industry to drive down costs.

With combined annual sales of US$170 billion, the partnership is designed to secure a better deal from the likes of Nestle , Procter & Gamble, Unilever, Danone and others to help the French and British groups to compete hard on price.

REUTERS