JOHANNESBURG, May 29 (Reuters) - South Africa's SPAR

Group plans to sell its retail businesses in

Switzerland and in the United Kingdom after completing a

strategic review of its European operations, the retail and

wholesale group said on Thursday.

The group, which owns several SPAR country licences of the

Dutch SPAR group, has been trimming its international operations

in order to "maximize the return on capital allocated". Last

year it sold its loss-making Polish business.

The group said it was in exclusive talks with an established

UK-based business over the sale of its UK operation Appleby

Westward Group. The potential buyer, which SPAR did not name,

was "well positioned to develop and grow AWG in South West

England," it said.

In Switzerland, SPAR has been engaging established parties

with extensive business interests in the region and experience

in European food retail and distribution, it added.

"The group approach has been to engage parties whose

interests align with the growth ambitions of the local

management teams and retailer partners, and will ensure

continuity for employees, suppliers and customers," SPAR said.

The Swiss business, with 300 stores, contributes 16 billion

rand ($899 million) to group turnover, while the South West

England unit contributes 6 billion rand.

Internationally, SPAR will be left with Ireland, its biggest

overseas business, and a joint venture in Sri Lanka.

($1 = 17.7956 rand)