Tesco seeks buyers for Czech and Slovak retail operations

Tesco is preparing to sell its continental European business, which includes operations in the Czech Republic, Slovakia, and Hungary. According to the Financial Times, the company is looking to divest these assets, potentially marking the end of its long-standing international expansion outside of the UK and Ireland.

Potential bidders for the Czech and Slovak operations include the German Schwarz Group (owner of Lidl and Kaufland), the Dutch Ahold Delhaize (operator of Albert), and the Polish chain Biedronka, owned by the Portuguese group Jerónimo Martins. The sale of the Czech and Slovak assets is expected to be handled separately from the Hungarian business, which faces more complex challenges due to government intervention in the Hungarian retail market.

Tesco is working with investment banks Goldman Sachs and Citi to facilitate the transaction. The European division generated approximately £4.5 billion in revenue last year, though its adjusted operating profit was around £115 million. The company currently operates 561 stores in the region.