Five questions answered on Tesco’s talks with China Resources

A win-win move, or do Tesco still just not understand China?

UK supermarket giant Tesco is said to be in talks with China Resources Enterprise (CRE) about merging both company’s markets and hypermarkets.

How many stores are the companies thinking of merging?

The grocery retailers are talking about merging Tesco’s 131 stores in China with CRE's almost 3,000 stores, which are called Vanguard. Both companies confirmed they were talks in stockmarket statements, but warned there was no guarantee the deal would go through.

How will control be divided up? 

State run CRE would control 80 per cent of the new chain and Tesco would have the remaining 20 per cent. The companies say that if the deal goes through it would mean Vanguard would be the leading multi-format retailer in China.

What will the deal mean for Tesco?

It would mean that Tesco could still have a presence in China without having to invest a significant amount of capital. One analyst, speaking to Reuters new agency, said: "This may look win-win, but in reality, Tesco is saying 'I can't figure out China',".

What has CRE said about the merger?

The company said that the venture would bring together its "deep understanding of local customers, established nationwide infrastructure and proven track record as a partner with Tesco's global retail expertise, international sourcing scale and supply chain capabilities".

What about Tesco’s other overseas operations?

In recent times Tesco, which is the biggest supermarket chain in the UK, has faced increasing difficulties in its overseas operations.

In April the company said it was abandoning its US chain of 199 Fresh & Easy shops. It also announced its first decline in annual profits in almost 20 years. In 2012, it announced it would leave the Japanese market.

The deal would mean Tesco retained a low-capital stake in the Chinese market. Photograph: Getty Images.

Heidi Vella is a features writer for Nridigital.com

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Peter Mandelson: I pray every day for an early election to end Labour's awful state

The Prince of Darkness is not happy. 

Peter Mandelson prays every morning for an early general election to deal the "awful" situation in the Labour party, he has revealed.

When asked about the likelihood of a snap election, the Labour grandee told an audience at the Royal Television Society "bring it on". 

According to The Guardian, he added: "I get up every day and pray that will be the case."

Mandelson also criticised politicians of all parties for "running scared" of freedom of movement to the point they could sacrifice the economy. 

The former European trade commissioner said Brexit would be "the most complex policy exercise mounted in peace time". 

Known as "The Prince of Darkness" for his mastery of political spin, Mandelson was an architect of New Labour and has long been a Europhile.

In August, he accused the Labour leader Jeremy Corbyn of sabotaging the attempt to stay in the EU.