Carrefour and Tesco have entered into a long-term strategic alliance.

The new partnership will see the two companies join global supplies and purchasing of own brand products and goods not for resale.

The alliance will be formalized in the next two months, with the deal is set within a three year-operational frame.

Through the deal, the companies look to improve the quality and choice of their products at lower price points.

“This strategic alliance between Carrefour and Tesco is a major agreement as it combines the purchasing expertise of two world leaders, complementary in their geographies, with common strategies,” says Alexandre Bompard, chairman and chief executive officer, Carrefour Group. “The agreement is a great opportunity to develop our two brands at the service of our customers. This international alliance further strengthens Carrefour allowing it to reach a key milestone in the implementation of its strategy.”

 “I’m delighted to be entering into a strategic alliance with Carrefour,” says Dave Lewis, chief executive officer, Tesco. “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.”