Today's Financial Times reports that Tesco and Carrefour, the world's fifth and second-biggest retailers respectively, are negotiating an asset swap deal.
The French company is expected to announce its intention to hand over its hypermarkets in Slovakia and the Czech Republic in return for Tesco's Taiwanese chain of stores.
Carrefour is looking to withdraw from markets where it does not hold a dominant position, while Tesco aims to build on its position as the biggest retailer in Slovakia and fourth-biggest in the Czech Republic.
If it takes place, the deal will represent the first time that two global retail groups have brokered such a swap. It comes a matter of months after Wal-Mart announced its plans to increase its central and eastern European presence.
Tesco has reportedly been struggling to compete with Carrefour in the Taiwanese market, where the French multinational has expanded significantly in the last couple of years.
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