Tesco to buy a piece of Meijer?

This item from Reuters is interesting:

Britain's top retailer, Tesco Plc, declined to comment on Tuesday on press reports it was poised to take a 49 percent stake in U.S. foodseller Meijer, but said it had never ruled out a North American deal.

Trade journal The Grocer said Tesco, due to report its third-quarter trading figures on Friday, would pay 2.5 billion pounds ($4.3 billion) for the stake in the family-owned, Michigan-based grocery and general merchandise operation.

The deal would be announced in two weeks, The Grocer said, without disclosing the nature of its sources.

A spokeswoman for Tesco said only that the company did not comment on market rumours, but emphasised that Chief Executive Terry Leahy had never ruled out a push into the United States -- traditionally something of a graveyard for British retailers.

A month or so ago, the rumor was that Tesco might buy Albertsons, but they denied that quite firmly. These statements sound like they're leaving things open.

Update 11/23: Meijer is denying the rumor, and says they plan to keep the company private.

"It is important for our entire team to know that these rumors are false and that we are not negotiating with any company for the sale of any part of our company."