<p> Tesco is struggling to sell its floundering U.S. foray, Fresh & Easy, leading people familiar with the situation to suggest that the most likely outcome would be a closure or break-up of the California-based operation.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Tesco had been speculated to be nearing a deal with Ron Burkle’s Yucaipa, but the talks have stalled, according to two individuals cited by the Financial Times. One suggested point of contention: Tesco is looking for a clean break from the U.S. as it doesn’t want to retain liabilities for Fresh & Easy after a deal is struck.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Tesco could also announce that it is forming a joint venture in China with China Resources Enterprise, a state-controlled group that ownes the Vanguard and Ole grocery chains.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Shore Capital Analyst Clive Black noted that the prolonged time frame means that the company is continuing to incur losses from Fresh & Easy despite the fact that they would be treated as discontinued operations.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">A partnership in China as well as the U.S. exit are part of chief executive Philip Clarke’s pledge to take a more disciplined approach to international growth. The Chinese venture represents a more economically sound decision as it would enable Tesco to continue to have a presence in the world’s most populous nation in a way that consumes less capital.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>Tesco is expected to announce a whether it will merge its business in China with that of Vanguard, and retain a 20 per cent stake. If a deal is concluded, Tesco could pay hundreds of millions of pounds to the Chinese retailer, affecting 3,000 stores. </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>Stay tuned to AndNowUKnow for the latest on the situation.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://www.ft.com/cms/s/a4feb694-0045-11e3-9c40-00144feab7de,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fa4feb694-0045-11e3-9c40-00144feab7de.html&_i_referer=#axzz2bQ6WgrnM" target="_new">Tesco Report</a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">
