City identifies UK giant as potential buyer, as Italian supermarket Esselunga put on market
Italian supermarket chain Esselunga has been put up for sale and City analysts have identified Tesco as a potential buyer.
An Esselunga spokesman confirmed the supermarket, which has 128 stores and annual sales of €5 billion (£3.48 billion), is on the market.
JP Morgan said: “We see Tesco as a potential acquirer of the operations. It could prove a good springboard into the last remaining Western European market with significant potential for modernisation.” Tesco declined to comment on the speculation.
JP Morgan also identified Carrefour and Auchan as possible buyers.
Separately, property company Topland has sold a£950 million portfolio of 33 Tesco stores to Pearl Group, the insurance company owned by Hugh Osmond.
The supermarkets were originally bought as a 50:50 joint venture with Tesco and it is understood that the retail giant has made a paper profit on the deal.
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