Tesco sells Czech and Slovak businesses to Ahold Delhaize

Tesco has agreed to sell its businesses in the Czech Republic and Slovakia to Ahold Delhaize at a total enterprise value of 1.7 billion euros (1.5 billion pounds) on a cash and debt free basis, the company announced on Friday. Expected net cash proceeds are 1.2 billion euros before tax and other transaction costs, and Tesco expects to return the majority of them to shareholders through an incremental share buyback following completion, which is expected in the second half of 2027 subject to antitrust and other regulatory approvals. The transaction covers all stores and offices in the two countries and the distribution centres in Kralupy, Presov and Beckov; the two businesses generated combined sales of 2.9 billion pounds and the majority of the Central European region’s 115 million pounds of adjusted operating profit in the prior year. Hungary is not part of the agreement and remains owned by Tesco, which said it will continue to review all options for that business.