Anadolu Endustri Holding AS is considering buying a stake in a combination of Tesco Plc’s Turkish operations and Migros stores as the company looks to expand beyond beverages, said people familiar with the matter.
Tesco Plc, the U.K.’s largest retailer, fell the most in almost nine months in London trading after the grocer’s two brokerage advisers said a promise of permanently cheaper prices will hurt profitability.
Tesco Plc, the U.K.’s largest retailer, will offer permanently cheaper prices on some items to replace overly complex promotions as it seeks to stem hemorrhaging sales and reverse a declining share of the market.
Tesco Plc Chief Executive Officer Philip Clarke, who took direct control of the grocer’s domestic business three months ago, has until the end of the year to convince some investors he can return the U.K. to growth after four quarters of declining sales.
Tesco Plc’s Turkish unit Tesco Kipa said its parent company started negotiations over the future of the business amid speculation that the parent company may seek a combination with another local operator.