UK convenience retailer Costcutter has remained silent over reports it is in talks over a supply tie-up with Asda.

Nisa’s deal to supply Costcutter expires in 2014 and the c-store chain could announce a new agreement in the coming days.

It is understood the retailer may consider a renewed deal with Nisa, or a strategic alliance with a UK multiple, rumoured to be Asda.

A spokesperson for Costcutter told just-food that “negotiations are under way for a deal” but declined to comment beyond that.

A spokesperson for Asda said: “We never comment on market speculation like this”. Nisa did not return a request for comment.

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