10 September 2013 Last updated at 13:01 ET
The US market has proved tough for many foreign food retailers.
Tesco has agreed to sell 150 of its Fresh & Easy stores to the investment company Yucaipa Companies.
The British supermarket giant, the world's third largest retailer, has been looking to dispose of its loss-making US food chain for some time.
Around 4,000 of Fresh & Easy's 5,000 employees are to transfer to the new business as part of the deal.
Tesco said in a statement that this is an "orderly and efficient exit from the US market".
Under the terms of the deal, Tesco will loan the new business around £80m.
Source: BBC News - Business http://www.bbc.co.uk/news/business-24040346#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
