Britain’s Tesco, the world’s No. 3 retailer, has launched a strategic review of its loss-making US chain Fresh & Easy that could lead to a sale or closure of the business.
Announcing the review alongside a third-quarter trading update that showed the continued pressure on Tesco’s home market, the group said it would report the findings of the review when it issues full-year results in April.
It said all options were under consideration for the business and it has appointed Greenhill & Co to assist in the review.
Tesco said it has had a number of approaches from parties interested in acquiring either all or part of Fresh & Easy, or in partnering with the firm. It added that Fresh & Easy CEO Tim Mason is leaving Tesco after 30 years with the group.
The 200-store Fresh & Easy chain, having absorbed nearly ￡1 billion (US$1.6 billion) in capital since its 2007 launch, remains stubbornly loss-making in the cutthroat US grocery market and Tesco CEO Phil Clarke has been under increasing pressure from investors and analysts to act.
Its third-quarter underlying sales growth eased to 1.8 percent from the second quarter’s 6.9 percent.
The problems in the US compounded a tough trading environment in Britain and central Europe, which was partially offset by the stronger performance in Asia.
Tesco yesterday reported a return to falling quarterly underlying sales in its home market, raising questions over whether its ￡1 billion recovery plan is struggling to gain traction.
The firm, which takes about one in every ￡10 spent in British shops, said sales at UK stores open for more than a year, excluding gasoline and value-added taxes, were down 0.6 percent in the 13 weeks to Nov. 24, its fiscal third quarter.
That compares with analysts’ forecast range of a decline of 0.9 percent to an increase of 0.2 percent. Sales in the fiscal second quarter rose 0.1 percent, its first rise after 18 months of decline.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
Standard Chartered Taiwan on March 26 announced that it has partnered with international fintech firm FinIQ to build an “Automated Structured Products Pricing Platform.” The bank is also introducing products from global issuers including Goldman Sachs Group Inc, Barclays PLC and BNP Paribas SA. The new platform enables an end-to-end process whereby it finds the most competitive pricing across multiple issuers in a matter of minutes, followed by automated documentation and transaction execution, which significantly shortens time-to-market and delivers a superior wealth management experience. Standard Chartered Bank Taiwan CEO Anthony Yu (游天立) said: “Standard Chartered is increasingly leveraging its wealth management
RSS