UK | Tesco has announced the proposed sale of Tesco businesses in the Czech Republic and Slovakia to Ahold Delhaize.
The sale, subject to antitrust and other applicable regulatory approvals, is expected to complete in the second half of 2027. The transaction includes all stores and offices in the Czech Republic and Slovakia, and distribution centres in Kralupy, Presov and Beckov.
Following completion, Tesco expects to return most net cash proceeds to shareholders through an incremental share buyback.
The transaction is expected to be broadly neutral to EPS and the Group Net Debt/EBITDA ratio after the buyback.
“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 Ken Murphy, Chief Executive of Tesco.
“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, increase its focus on its core UK and Irish businesses, and support continued investment in its food-first retail ecosystem and the capabilities that will drive future growth, while enabling a further return of capital to shareholders.
Until the transaction completes, the businesses in the Czech Republic and Slovakia remain part of Tesco, with priority remaining to continue serving customers and supporting colleagues.
Hungary is not part of this agreement and remains owned and operated by Tesco.
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