Google, Permira may join hands for Tesco’s customer data business
Reports are flowing in about a possible collaboration between Google and Permira for a joint bid for British retailer Tesco Plc’s customer data business.
Tesco’s data department, Dunnhumby, could be valued at a sizable £1 billion (~$1.59 billion). Dunnhumby gathers and analyses data from about 1 billion shoppers globally. Goldman Sachs has been appointed by Tesco to explore strategic options for Dunnhumby earlier this year after the company decided to take some action on increasing costs and to liquidate some of its assets.
According to sources aware of the development, on top of the join bid from Google and Permira, advertising group WPP Plc is also interested and is likely to bid as well reports Reuters.
Sky News also got a tip from an anonymous source about the matter who claimed that Google and Permira would be looking to roll-out Dunnhumby’s customer loyalty rewards which shot Tesco onto the global scene in the noughties.
Sources also reveal that beyond Dunnhumby, Tesco is also looking to sell its South Korean unit which is marred with debts, accounting scandal, and competition from Aldi Inc and Lidl.