Tesco to sell Czech and Slovak businesses to Ahold Delhaize for £1.5bn
Tesco is to sell its Czech Republic and Slovakia businesses to Ahold Delhaize in a deal worth €1.7 billion, as it looks to focus on its UK and Irish operations.
The transaction will include all stores and offices in the Czech Republic and Slovakia, as well as distribution centres in Kralupy, Prešov and Beckov.
Subscribe to TRBThe sale is expected to complete in the second half of 2027, when Tesco expects to return the majority of the net cash proceeds to shareholders through an incremental share buyback.
Ken Murphy, chief executive of Tesco, said: “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.
“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 two businesses comprise a network of over 360 self-operated supermarkets, hypermarkets and convenience stores, as well as over 100 franchise stores, and generating approximately €3.5 billion in sales.
Ahold Delhaize is an international food retail group with a portfolio of 17 local brands serving 77 million customers every week in the US, Europe and Indonesia.
Frans Muller, chief executive of Ahold Delhaize, said: “This acquisition is an important step in strengthening our position in the Central and South Eastern European region.
“It brings together highly complementary businesses with strong local market expertise and gives us the opportunity to expand into Slovakia, an attractive adjacent market. ]
“We see significant potential to combine our European scale, capabilities and retail expertise to better serve customers and support sustainable long-term growth. We look forward to working closely with the local teams as we take this next step together.”
