Tesco and Carrefour have announced plans to enter into a “long-term, strategic alliance”, with the aim of getting better deals from multinational suppliers.

The two sides said the agreement will initially last for three years and will cover their “strategic relationship with global suppliers, the joint purchasing of own brand products and goods not for resale”.  It is hoped the tie-up will be formally agreed upon within the next two months.

The groups said they expect the deal to help improve the quality and choice of products offered to consumers, at “even lower prices”. They also said the deal will help strengthen their relationships with their suppliers and “create significant opportunities for those suppliers”, adding that both sides will continue to work with suppliers at a local and national level.

Dave Lewis, Group Chief Executive of Tesco, commented: “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.”

Alexandre Bompard, Chairman and CEO of Carrefour, added: “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. This agreement is a great opportunity to develop our two brands at the service of our customers.”

The deal marks the latest purchasing tie-up between major European supermarkets in the face of heightened competition from the discounters. It is also likely to be seen as Tesco’s reaction to the proposed Sainsbury’s-Asda merger.