Key client Tesco hands magic circle firm a disposal in Japan

Freshfields Bruckhaus Deringer has won a mandate to advise Tesco on the sale of its Japan business as the firm gears up to relocate its latest corporate partner to the region.

The firm is advising Tesco on the sell-off of its 129 stores in Japan, a move the retail giant confirmed last month, stating that it "cannot build a sufficiently scalable business" in the region.

The Freshfields team handling the sale is understood to be led by Tokyo head James Lawden, although the firm declined to comment.

The sell-off of the stores – all of which are based in the Greater Tokyo region and operate under the Tsurakame, Tesco and Tesco Express formats – will take place over the coming months, with Tesco stating that it will now focus on its "larger businesses in the region".

Freshfields also acted for Tesco on its initial venture into Japan back in 2003, which saw the retailer acquire Tokyo convenience store chain C-Two Network for £139m.

The role comes as the firm prepares to relocate City corporate partner Martin Nelson-Jones to the region in the first half of 2012.

Nelson-Jones is the latest City corporate partner to move over to the firm's Japan office, with his transfer coming after corporate and M&A partner James Wood returned to London earlier this summer.

Wood relocated to Tokyo in 2007, prior to which current US managing partner Julian Pritchard was based in Japan from 2004 to 2007.

Nelson-Jones' relocation will take the total number of partners in the magic circle firm's Japan office to seven, including four locally qualified lawyers. He has been a partner at the firm since 2001.