Tesco has agreed to sell its supermarket businesses in the Czech Republic and Slovakia to Dutch retailer Ahold Delhaize in a transaction valued at €1.7bn, continuing its withdrawal from international markets outside the UK and Ireland.
The agreement covers Tesco’s stores, offices, and distribution facilities in both countries, including logistics centres in Kralupy, Prešov, and Beckov. Completion remains subject to competition and other regulatory approvals and is expected during the second half of 2027.
The €1.7bn figure represents the lease-adjusted enterprise value of the businesses. Ahold Delhaize identifies an enterprise value of approximately €1.2bn before the adjustment for lease liabilities, reflecting the different accounting treatments used to describe the transaction.
Tesco expects approximately €1.2bn in net cash proceeds before tax and transaction costs. The company intends to return most of that amount to shareholders through an additional share buyback following completion.
The Czech and Slovak operations generated combined sales of £2.9bn during Tesco’s 2025/26 financial year and accounted for most of the £115m in adjusted operating profit produced by its Central European division.
The businesses employ more than 14,000 people and operate over 360 supermarkets, hypermarkets, and convenience stores, alongside more than 100 franchise locations.
For Ahold Delhaize, the acquisition provides additional scale in the Czech Republic, where it already owns the Albert supermarket chain, and establishes a substantial position in Slovakia.
The combination would create one of the Czech Republic’s largest grocery retail operations, bringing together existing store networks, distribution infrastructure, and customer relationships. Its scale will also make competition approval an important condition before ownership can change.
Ahold Delhaize expects to develop the acquired estate through store refurbishment, digital improvements, changes to product ranges, and the integration of selected commercial capabilities. It also anticipates benefits from purchasing scale and shared operations.
Those potential efficiencies remain dependent on completion and subsequent integration. The transaction will involve combining businesses operating in established national grocery markets, where store locations, logistics networks, supplier relationships, and customer preferences influence commercial performance.
Tesco’s decision forms part of a longer restructuring of its international portfolio. Over the past decade, the retailer has sold businesses in South Korea, Thailand, and Malaysia, concentrating investment and management attention on the UK and Ireland.
It has also released approximately £500m through disposals of non-core property assets in Central Europe since 2021, including shopping centres. The latest transaction involves the sale of substantial operating businesses rather than property no longer required for its core activities.
Tesco’s Hungarian operation is not included in the agreement. The company continues to review its options for that business, leaving the future of its remaining Central European presence unresolved.
The proposed disposal is expected to be broadly neutral to Tesco’s earnings per share and net debt-to-EBITDA ratio after the planned share buyback. The eventual financial effect will depend on the final proceeds, completion arrangements, and capital returned to shareholders.
For Ahold Delhaize, the purchase will be funded through committed financing and existing resources. The company expects the acquisition to be broadly neutral to earnings per share in the first year after completion.
The transaction would transfer Tesco’s Czech and Slovak store networks, employees, and distribution operations to an established European supermarket group, while releasing capital for Tesco’s continued focus on its principal UK and Irish markets.
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