Tesco agrees €1.7 billion sale of Czech and Slovak businesses

Tesco ($TSCO-LSE) agreed to sell its Czech and Slovak businesses to Ahold Delhaize for an enterprise value of €1.7 billion. It expects approximately €1.2 billion of net cash proceeds before tax and transaction costs. The sale includes all stores and offices in both countries and three distribution centres, further concentrating the group’s operations on its core UK and Irish markets.

Completion is expected in the second half of 2027 and requires antitrust and other regulatory approvals. Tesco intends to return most net proceeds through an additional share buyback after closing; that distribution has not begun. Management expects the disposal and subsequent buyback to be broadly neutral to earnings per share and leverage. Hungary remains outside the agreement, with Tesco continuing to review options for that business.

Sources:

• RNS via Investegate