Tesco in negotiations to take over Real in Romania

British retail group Tesco, with 73 billion euros in turnover, is in negotiations to enter the Romanian market by acquiring Real hypermarket chain, held by German group Metro, say market sources.

According to the sources, the British are close to signing an agreement to take over the Romanian Real business, with the takeover to be become official in two years' time.
In the interim, Real hypermarket chain needs to achieve a set of targets, among which the opening of new stores and improving its profitability.
Real has 24 stores in Romania and posted a 760 million-euro turnover in 2009 (up 6%), while Carrefour posted 950 million euros in 2009 and Kaufland a 870 million-euro turnover that same year.
Tesco recruited Andreea Lupea, former Chief Operating Officer of Real this year. Tesco officials did not wish to comment. Rudiger Stahlschmidt, head of media relations at Metro AG, said: "We don't plan to relinquish one or more Romanian-based stores in the Real chain to any rival."
The Real chain posted 57 million euros in losses in Romania last year, compared with 55.4 million euros in 2008.