The alliance will cover the strategic relations with global suppliers, the joint purchasing of own-brand products and goods not for re-sale.
The alliance will cover the strategic relations with global suppliers, the joint purchasing of own-brand products and goods not for re-sale, said Carrefour in a statement.
Last year, Tesco – which employs 440,000 people – reported profits of £1.3b with sales of £57.5b.
Carrefour operates 12,300 stores across more than 30 countries, employing about 375,000 people worldwide. Last year, it had sales of €88.2b (£78b).
The two companies have been talking for two years and, although no formal agreement has yet been signed, they said they were hoping to confirm a deal in the next two months. Under the alliance, Tesco and Carrefour could also reduce their costs by clubbing together to buy petrol for delivery vans, as well as services such as legal services and accounting.
Tesco chief executive Dave Lewis said: “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.”
In addition, a Tesco spokeswoman said a “clean team” would be established between the two companies, to ensure they did not see each other’s pricing or other commercially sensitive information.