Mumbai: Shares of Trent Ltd jumped by over 18% on Wednesday after the company announced that UK supermarket chain Tesco Plc is likely to invest about $110 million to buy a 50% stake in Trent Hypermarket Ltd.

The deal was confirmed by commerce minister Anand Sharma. The British retailer is making an application to the Foreign Investment Promotion Board (FIPB), the Tata group-owned retail chain Trent Hypermarket said in a statement on Tuesday.

The announcement indicates a strengthening of the existing relationship between Trent and Tesco. The two have a joint venture that provides back-end support and retail expertise.

If the application is approved, Tesco and Trent will hold an equal stake in Trent Hypermarket, which operates the Star Bazaar stores in the country.

Trent shares trimmed their gains to close 10.74% higher at 1,181.15 apiece on BSE on Wednesday. India’s benchmark Sensex index rose 1.2% to 20,859.86 points.

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