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Tesco buys Czech Republic retail chains for £34m

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Tesco’s will be able to continue its roll out of Express stores in the Czech Republic following the acquisition of private equity firm Penta-owned Koruna in the central European country.

A £34 million deal also saw the UK’s number one grocer take over another Czech retail chain, Zabka.

Both purchases are subject to the usual regulatory approvals, but will give Tesco the opportunity to expand its convenience format across the continent.

Philip J Clarke, CEO of Tesco in the Czech Republic, said: “The acquisition of Koruna will complement our continued organic growth of Tesco Express in the Czech Republic.

“The chain is a good fit with our Express format and we feel we can make improvements to the stores’ range, price and overall customer shopping trip.

“We will continue to operate the Zabka stores as a franchise which creates the opportunity to combine local entrepreneurial talent with the operating scale of Tesco.”

Jozef Janov, Investment Director of Penta, told staff of both Czech retailers that they are joining “a brilliant team” and one that will look after them.

“I want to thank them for all their work and wish them the very best for the future,” he added.

Published on Friday 24 December by Editorial Assistant

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