British retail giant Tesco Plc on Friday formally announced a joint venture with the Tata Group's Trent Hypermarket Ltd, moving a step closer to become the first global retailer to enter India's lucrative multi-brand retail segment.

Tesco announced that it had picked up a 50 per cent stake in Trent Hypermarket Ltd for £85 million (Rs 850 crore).

Announcing the JV deal, The British retailer said, "Following its previous announcement and receipt of approval from the Indian Foreign Investment Promotion Board (FIPB), Tesco has today entered into an agreement with Trent Ltd, a part of the Tata Group, to form a 50:50 Joint Venture in Trent Hypermarket Ltd."

Once the transaction is completed, Trent Hypermarket will operate twelve stores that will offer a range of products, including food & grocery, personal & home-care, home & kitchen, and fashion items.

Currently, Trent Hypermarket operates the well-known Star Bazaar retail business in India. It has a total of sixteen stores across the western and southern regions of India.

The Indian Foreign Investment Promotion Board (FIPB) had approved Tesco's proposal for creating a JV with Trent Hypermarket in December last year.

Tesco-Trent Hypermarket's first stores are expected to come up in Maharashtra and Karnataka.