TESCO KP KTL PZRLM TRT LJSTK V GD SNY AS 
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Tesco and the company's Turkish subsidiary Tesco Kipa, which it bought in 2003 and now operates 191 stores, made the announcement in brief statements on Tuesday.
Shares in Tesco Kipa fell 9.5 percent to 1.34 Turkish lira, valuing the company at around 1.78 billion lira (508 million pounds).
Tesco has said Kipa's business around Izmir on Turkey's western coast is very profitable but its business in the east around Ankara and elsewhere, where its stores are bigger and the brand is not so well known, lacked "critical scale" and could be restructured, but it would not leave the country.
"Tesco Plc's talks with various companies regarding partnership options have come to an end without being able to reach an agreement," Kipa said in a statement sent to the Istanbul stock exchange.
"Tesco has confirmed today that it has ended talks with various parties in respect of potential options for its business in Turkey," the British company said in a separate statement.
"We are committed to driving value from all our businesses and, for Kipa, we believe that this is best achieved by accelerating our plans to focus the business on its heartlands, minimise capital spend and improve profitability," Tesco said.
Tesco Kipa said in February it was in preliminary talks "with various companies regarding various options" after the Financial Times had said one option it was looking at involved a combination with the country's biggest food retailer, Migros MGROS.IS. Migros is owned by private equity firm BC Partners.
Under pressure to turn around falling sales in Britain, where it generates two thirds of its revenues, Clarke has already done deals to sort out problem businesses in Japan, the United States and China.
But Clarke is coming under increasing pressure because the British business is still losing market share even after spending over 1 billion pounds on a turnaround programme.
Last month Tesco reported a second straight year of falling profit and took a 734 million-pound charge on its European and Chinese businesses.
(Reporting by Humeyra Pamuk; Writing by Emma Thomasson; Editing by Daren Butler and Greg Mahlich)
