Tesco divests Czech and Slovak businesses
The €1.7 billion deal covers more than 360 self-operated stores and over 100 franchises, as Tesco narrows its focus on the UK and Ireland while keeping its Hungarian business.
Tesco has agreed to sell its businesses in the Czech Republic and Slovakia to Ahold Delhaize for an enterprise value of €1.7 billion, on a cash- and debt-free basis. The deal covers more than 360 self-operated supermarkets, hypermarkets and convenience stores, over 100 franchise stores, offices and distribution centers in Kralupy, Prešov and Beckov. Together, the businesses employ more than 14,000 people.
The two operations generate around €3.5 billion in sales and accounted for most of the £115 million adjusted operating profit of Tesco’s Central European region over the previous 52 weeks. Tesco expects net proceeds of €1.2 billion before tax and transaction costs. After completion, it plans to return most of that amount to shareholders through a share buyback. The transaction is subject to antitrust and other regulatory approvals and is expected to complete in the fourth quarter of 2027.
“For Tesco, the transaction will further simplify the group, increasing our focus on our core UK and Irish businesses,” said Ken Murphy, CEO of Tesco.
“This acquisition is an important step in strengthening our position in the Central and Southeastern European region,” said Frans Muller, CEO of Ahold Delhaize, which already operates the Albert supermarket chain in the Czech Republic.
Tesco’s business in Hungary is not part of the deal and will remain under its ownership while the retailer continues to review options for its future.
