Tesco agrees to sell its Czech and Slovak businesses to Ahold Delhaize for €1.7 billion

Tesco, the UK’s largest supermarket group, said on Friday 30 October that it has agreed to sell its businesses in the Czech Republic and Slovakia to Ahold Delhaize, the Dutch-Belgian food retailer that runs the Albert chain in the Czech Republic.

The terms. Tesco said the sale values the two businesses at a total enterprise value of €1.7 billion (about £1.5 billion) on a cash- and debt-free basis, which corresponds to €1.2 billion (about £1.0 billion) when lease liabilities are excluded. Tesco expects net cash proceeds of about €1.2 billion before tax and costs and said it plans to return the majority to shareholders through an additional share buyback. The deal needs antitrust and other regulatory approvals and is expected to be completed in the second half of 2027, Tesco said.

What is included. The sale covers all Tesco stores and offices in both countries and distribution centres in Kralupy, Prešov and Beckov, according to Tesco. The two businesses had combined sales of £2.9 billion in the previous 52-week period. Ahold Delhaize will add more than 360 company-operated stores and more than 100 franchise stores, The Brussels Times reported. Slovakia will be a new market for Ahold Delhaize. Tesco’s business in Hungary is not part of the agreement, and Tesco said it will “continue to review all options” for it.

What Tesco said. Chief executive Ken Murphy said the deal “will further simplify the Group, increasing our focus on our core UK and Irish businesses”. Tesco entered the Czech market in 1996 by buying K-Mart department stores, Radio Prague International reported.