Tesco 'to sell newsagents in £20 deal'

Supermarket group Tesco is understood to be on the verge of agreeing a £20m (€30m) deal to sell its Dillons newsagents chain in Britain.

The group is expected to announce within weeks that it is selling the 180 shops to private convenience store chain TM Retail.

Tesco has been trying to offload Dillons since it acquired the newsagents as part of its £357m (€540.8m) acquisition of T&S Stores in October 2002.

It has since begun converting the stores, which trade under the One Stop and Day & Nite brands, into Tesco Express shops, but has been looking for a buyer for Dillons.

Tesco had also been reported to be trying to acquire some of TM Retail’s stores to convert into Tesco Express outlets, but it is understood to have shelved this part of the deal.

A Tesco spokeswoman said today: “It is no secret that we have been looking for the right purchaser of the Dillons stores since the T&S acquisition.

“In terms of deals, when we have something to say we will say it.”

TM Retail is already one of the Britain's biggest newsagent operators, owning the Martin’s and Forbuoys chains.