Tesco’s subsidiary in Turkey has decided to hang onto some of its stores instead of selling them to rival Turkish retailer Begendik after their performance improved strongly, it said on Saturday.
Begendik’s chief executive said in September that the company planned to buy 10 stores from Tesco Kipa as part of expansion plans that could ultimately lead to a stock market listing.
Tesco Kipa Chief Executive Bill O’Neill said in a statement that “there is always a possibility that negotiations end without reaching a deal. The stores which were the subject of the deal are good stores, and showed strong improvement in performance over the past six months.” He continued by saying “we didn’t feel the deal was right for Kipa.”
Begendik runs 46 supermarkets and 13 hypermarkets throughout Turkey. It aimed to almost treble sales to 1.5 billion lira ($500 million) in 2015, CEO Haci Begendik said in September.
Domestic players such as Begendik have benefited as international chains have pulled back from Turkey’s highly competitive retail market. Begendik bought 12 stores from German food retailer Metro AG in 2014.
Source: Daily Sabah