RICHMOND — German discount grocer Lidl will launch its expansion into the U.S. market from Virginia, creating more than 700 jobs in Arlington and Spotsylvania counties as it establishes an American headquarters and distribution center, Gov. Terry McAuliffe announced Friday.

Lidl, one of the largest retailers in Europe, is expected to invest a total of $202 million to establish its U.S. corporate headquarters in Arlington and a regional headquarters and distribution center in Spotsylvania County.

McAuliffe (D) approved $7 million in incentive grants to seal the deal, which he announced after meeting with company officials at Lidl’s international headquarters in Neckarsulm, Germany. The governor is leading an 11-day, six-country trade mission to Europe, part of his push to expand and diversify Virginia’s defense-heavy economy.

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