Tesco has been exploring its options with regards to its US operation Fresh and Easy Neighbourhood Market, according to reports in the UK.
The Telegraph reported that the UK retiler had been in discussions with Aldi and Trader Joes about selling Fresh & Easy, although a sale is just one of the options Tesco could take.
Other options include selling off a stake in the business or closing the business and disposing of the assets, with a break-up 'considered the most likely option', the publication reported.
Tesco has invested more than £1bn (US$1.5bn) in the California-based chain since it first launched in 2007.
