Tesco has agreed to sell its businesses in the Czech Republic and Slovakia to international retailer Ahold Delhaize in a deal valued at €1.7bn (£1.5bn).
The proposed sale covers all Tesco stores and offices in the two countries, as well as distribution centres in Kralupy, Presov and Beckov. Completion is expected in the second half of 2027, subject to regulatory approval.
The businesses generated combined sales of £2.9bn in the latest 52-week reporting period and accounted for most of the £115m adjusted operating profit reported by Tesco’s Central European region.
The UK’s largest retailer expects to receive net cash proceeds of €1.2bn (£1bn), before tax and transaction costs. It plans to return the majority of the proceeds to shareholders through an additional share buyback.
Related Story
“I want to thank every colleague in the Czech Republic and Slovakia for the contribution they have made to Tesco over many years. Together, they have built strong national businesses with deep connections to the customers and communities they serve,” said Tesco chief executive Ken Murphy.
“It has been a privilege to serve customers and invest in colleagues, stores and supply chain in the Czech Republic and Slovakia and we are proud of what has been achieved over the past 30 years. I am delighted that Ahold Delhaize intends to invest in both markets.
“For Tesco, the transaction will further simplify the Group, increasing our focus on our core UK and Irish businesses and supporting our continued investment in our food-first retail ecosystem and the capabilities that will drive future growth, while enabling a further return of capital to shareholders.
The CEO added: “Until the transaction completes, our businesses in the Czech Republic and Slovakia remain part of Tesco and our priority remains to continue serving customers and supporting colleagues.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
