Tesco’s Turkish subsidiary Kipa has decided to hold onto to some its stores rather than selling to local rival retailer Beğendik, after seeing a significantly stronger performance, reports Reuters.
In September of 2015, Beğendik announced plans to buy 10 stores from Tesco Kipa as part of expansion plans that could lead to a stock market listing. Beğendik currently runs 46 supermarkets and 13 hypermarkets in Turkey and aimed to almost treble sales to TRY1.5 billion (approximately €466 million) in 2015.
Tesco Kipa Chief Executive, Bill O’Neill said in a statement, "There is always a possibility that negotiations end without reaching a deal.”
"The stores that were the subject of the deal are good stores, with great colleagues and strong improvements in performance over the past six months. We didn't feel the deal was right for Kipa," he added.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Jenny Whelan. To subscribe to ESM: The European Supermarket Magazine, click here.
