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TalkTalk and O2 rumoured to be interested in buying Tesco’s mobile unit

Tesco is set for further retrenchment as it seeks to focus on its core grocery business with a sale of its in-house mobile unit reportedly in the works.

According to the Financial Times such a transaction could net the business a sum in the region of "hundreds of millions of pounds", a useful windfall to help repair the retailer's battered bank balance.

Amongst the likely purchasers for the business are TalkTalk and O2, attracted in part by access to the brand itself, although any deal will need to be cleared by EU competition authorities.

It is the latest sign of consolidation within the British telecommunications industry following a January agreement by Hutchison to buy Telefonica’s O2 for £9.95bn.

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