TESCO confirmed yesterday that it has scrapped plans to sell its loss-making business in Turkey after talks with potential joint venture partners broke down.
The supermarket chain was in talks with various groups over Kipa, which has 191 stores. These parties were reported to include private equity group BC Partners about creating a joint venture with its Turkish chain Migros.
The news marks another setback for Tesco which has been trying to focus on improving sales at home and cutting its exposure to some tougher overseas markets.
The group said it has “ended talks with various parties in respect of potential options” and that it will focus on improving the business.