Carrefour has ditched plans to sell its stores in Malaysia and Singapore in a dramatic strategic U-turn.
The French retail giant said it would now look to improve its own performance in the emerging Asian markets.
“We have some very encouraging growth prospects in Malaysia and can create much more value by doing it ourselves,” said chief executive Lars Olofsson.
“Emerging markets are going to be the major engine of growth in the medium and long term for our company.”
The shift comes after Carrfeour earlier this week sealed the €868m sale of its 42 Thai stores to French rival Casino.
Tesco had been strongly linked with a deal to buy the Carrefour stores, but said it would now concentrate on organic growth in Thailand.
Tesco misses out on Thai boost as Carrefour sells to French rival (16 November 2010)
Tesco joins auction for Carrefour’s Asia stores (2 September 2010)
Carrefour U-turns again over Russia (1 September 2010)