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Tesco retreats further from Europe with a £1.5bn sale of its Czech and Slovak stores to Dutch giant Ahold Delhaize

Ken Murphy, whose deal with Ahold Delhaize will return capital to Tesco shareholders as the UK's largest grocer exits central Europe.
Ken Murphy, whose deal with Ahold Delhaize will return capital to Tesco shareholders as the UK's largest grocer exits central Europe.

Tesco's chief executive Ken Murphy confirmed the deal will "further simplify the Group" and return capital to shareholders, completing the UK's largest grocer's near-total withdrawal from continental Europe after a decade of international sell-offs. The sale covers over 360 self-operated stores plus more than 100 franchise outlets across the two countries, employing over 14,000 staff, and is expected to generate net cash proceeds of €1.2bn before tax.

Tesco's Hungary business is excluded from the deal, with the grocer still reviewing options for that operation separately.

Dutch buyer Ahold Delhaize already runs the Albert supermarket chain in Czechia and expects the combined business to become the country's top grocer by market share.

Completion is targeted for the second half of 2027, with Tesco planning to return the majority of proceeds to shareholders via a share buyback.

MoreFinancial TimesTesco to sell Czech and Slovak units to Ahold Delhaize for £1.5bnCity A.M.Tesco retreats from Europe with £1.5bn sale of Czech and Slovak divisionsReutersTesco to sell Czech, Slovak businesses to Ahold Delhaize in $1.9 billion dealRTÉ IrelandTesco to sell Czech, Slovak businesses to Ahold Delhaize in €1.7 billion dealESM MagazineTesco Agrees To Sell Czech And Slovak Businesses To Ahold DelhaizeYahoo Finance UKTesco to sell Czech and Slovak businesses to Ahold Delhaize for €1.7 billion - Yahoo Finance UK
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