Key facts
- Tesco is selling its Czech Republic and Slovakia businesses to Ahold Delhaize.
- The total enterprise value for the sale is €1.7 billion (£1.5 billion) on a cash and debt free basis.
- Expected net cash proceeds are €1.2 billion (£1.0 billion) before tax and transaction costs.
- The businesses generated combined sales of £2.9 billion and £115 million in adjusted operating profit for the prior year's 52-week period.
- The transaction includes all stores, offices, and distribution centers in the Czech Republic and Slovakia.
Tesco has agreed to sell its businesses in the Czech Republic and Slovakia to Dutch supermarket giant Ahold Delhaize for €1.7 billion (£1.5 billion). The deal, which is subject to regulatory approvals, is expected to be completed in the second half of 2027. Tesco plans to return the majority of the net cash proceeds, estimated at €1.2 billion (£1.0 billion), to shareholders through an incremental share buyback. The transaction is anticipated to be broadly neutral to earnings per share and the Group Net Debt/EBITDA ratio post-buyback. Tesco's CEO Ken Murphy stated the sale will simplify the group and increase focus on its core UK and Irish operations.