German grocer Rewe Group is negotiating with Conad about the disposal of large parts of its loss-making Billa supermarket and superstore division in Italy.

Besides Conad, Rewe Group’s partner in the Coopernic buying alliance Coop Italia is also reported to be interested in the 190-store network.

Billa in Italy recorded a sales decline of more than 6% last year, despite the retailer’s efforts to boost sales by converting the Standa and Iperstanda stores to the uniform Billa banner.