Tesco has announced that it is to sell its businesses in the Czech Republic and Slovakia to the Dutch retail firm, Ahold Delhaize, for a total enterprise value of £1.5bn.

Tesco Czech Republic and Slovakia generated sales of £2.9bn in the past year, with the majority of the £115m adjusted operating profit reported for the Central European region.

The transaction includes all stores and offices in the Czech Republic and Slovakia, and distribution centres in Kralupy, Presov and Beckov.

The deal comes after Tesco, since 2021, has released £500m from the sale of non-core property assets in Central Europe, including a number of large shopping malls.

The supermarket firm said Hungary is not part of the announced agreement and continues to be owned and operated by Tesco.

The deal is set to complete in the second half of 2027.

Chief executive at Tesco, Ken Murphy, said: "I want to thank every colleague in the Czech Republic and Slovakia for the contribution they have made to Tesco over many years. Together, they have built strong national businesses with deep connections to the customers and communities they serve.

"It has been a privilege to serve customers and invest in colleagues, stores and supply chain in the Czech Republic and Slovakia and we are proud of what has been achieved over the past 30 years. I am delighted that Ahold Delhaize intends to invest in both markets.

"For Tesco, the transaction will further simplify the Group, increasing our focus on our core UK and Irish businesses and supporting our continued investment in our food-first retail ecosystem and the capabilities that will drive future growth, while enabling a further return of capital to shareholders."

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