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Tesco reportedly plans to invest the equivalent of $3.1 billion (US), mostly on strengthening its dominant position in its home UK market, according to The Financial Times.

The money, according to Tesco CEO Sir Terry Leahy, will be used to build new hypermarkets, expand the company's Tesco Express chain of convenience stores, and invest in businesses such as financial services. The funds also will be used to pay down debt, FT reports.

Between expansion and debt retirement, the initiative should allow Tesco to consolidate its competitive position against Wal-Mart's Asda Group, Sainsbury, and the likely combination of Safeway Plc and William Morrison Supermarkets (once this planned acquisition takes place).
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