Italian supermarket group Esselunga has rubbished reports that it is in talks with Tesco over a possible takeover.

Reports in the Italian press had suggested that Tesco was in talks to either buy or form a partnership with Esselunga.

However, Bernardo Caprotti, chairman of Esselunga, said: “We have no contacts with Tesco. Tesco and Esselunga are two incompatible companies.”