Tesco Sells Czech and Slovak Supermarket Operations to Ahold Delhaize for 1.7 Billion Euros

Tesco, Britain's largest supermarket chain, has agreed to sell its supermarket businesses in the Czech Republic and Slovakia to Dutch retailer Ahold Delhaize at an enterprise value of 1.7 billion euros, equivalent to approximately 1.5 billion pounds or 1.9 billion dollars. The price is set on a cash-and-debt-free basis and includes lease liabilities under IFRS 16 accounting rules; stripping those out, the value falls to 1.2 billion euros. Tesco expects net cash proceeds of around 1.2 billion euros before tax and other transaction costs.

The two Central European businesses generated combined sales of 2.9 billion pounds in the last financial year and accounted for the bulk of the 115 million pounds in adjusted operating profit reported by Tesco's Central European segment. The deal covers all stores and offices in both countries. Completion is expected in the second half of 2027, subject to antitrust and other regulatory approvals.

Tesco plans to return the majority of the net proceeds to shareholders through an additional share buyback once the transaction closes. The company said the deal is expected to be broadly neutral to earnings per share and to its net debt to EBITDA ratio after the buyback is completed. The sale is consistent with Tesco's ongoing strategy of concentrating on its core UK business.