News: Tatas, Tesco close to tie-up

(RTR 23/02/2007) Mumbai - Britain's Tesco Plc is close to tying up with India's Tata group for a retail venture, the Business Standard said on Friday.

"Tesco and Tatas have reached a crucial stage in the negotiations, which have advanced considerably over the recent past," the paper said, citing unnamed sources.

A deal would be structured in a manner that does not cause a conflict of interest with Australia's Woolworths Ltd. with whom the Tata group has a retail venture for consumer electronics and appliances in India.

"We have no comments to make on the report," a Tata group spokesman said.

A senior Tata group official said last week the company wasn't looking to enter food and grocery immediately and that its preferred partner for supermarkets, when it did make a foray, would be Woolworths.

The Tata group also operates department stores and hypermarkets in India.

India allows multi-brand retailers to operate only through cash-and-carry or licence and franchise operations, the route chosen by Germany's Metro AG Shoprite Holdings and Marks & Spencer

Wal-Mart Stores Inc. has a wholesaling joint venture with Bharti Enterprises Ltd.