Grocer Tesco has ended merger talks it was holding with multiple parties into options for its Turkish business Kipa.
Tesco will now focus on accelerating plans to focus the 190 store Kipa business on “its heartland”, minimise capital spend and improve profitability.
The grocer has been in talks with various parties for three months including local supermarket group Migros Ticaret and beverage firm Anadolu Endustri.
Tesco forged a similar deal with China Resources Enterprise with its Chinese business last year as it retreats from its underperforming overseas businesses.
Turkey was its worst-performing international arm in its last financial year with like-for-like sales falling 7%, although this improved to a 1.7% uplift in its fourth quarter.
Tesco said: “The efforts of the team in Turkey are already evident in a stronger customer offer and improved performance and there is more we can do to drive stronger cash generation and returns.”
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