Internet search giant Google Inc and private equity fund Permira are in talks to make a joint bid for British retailer Tesco Plc's customer data business, a source familiar with the matter said.

The business, Dunnhumby, which could be valued at up to 1 billion pounds ($1.59 billion), gathers and analyses data from about 1 billion shoppers globally.

Tesco appointed Goldman Sachs to explore strategic options for Dunnhumby after announcing a plan to slash costs and sell assets in January.

The unit has also seen interest from advertising group WPP Plc.
Google invested $40 million in Permira-owned start-up Renaissance Learning last year.

Tesco has also been considering selling its South Korean unit as it battles debt, an accounting scandal, and competition from Aldi Inc and Lidl.