Tesco are planning an alliance with French retail giant Carrefour, as the two try to use their joint buying power to cut costs and offer lower prices to customers.
The two plan a "strategic relationship" when dealing with global suppliers, and the tie-up will also mean joint purchasing of their own-brand products.
The two have been talking for two years and, although no formal agreement has yet been signed, they said they were hoping to confirm a deal in the next two months.
