British supermarket chain Tesco and France's Carrefour are creating a strategic alliance to give them more clout with global suppliers.
The companies say in a statement Monday that the three-year deal will cover their relationship with suppliers and include joint purchasing of the stores' own-brand goods.
They say the alliance will help both parties "improve the quality and choice of products available" and enhance competitiveness.
The deal comes as retailers adjust to intense pressure from internet rivals as more people shop online through sites like Amazon.
Tesco rival Sainsbury's in April agreed to buy Walmart's British unit, Asda, for 7.3 billion pounds ($9.6 billion) in a deal that would make it the U.K.'s largest supermarket chain.
The Tesco chief executive, Dave Lewis, said: "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."