business
Tesco Agrees to Sell Its Czech and Slovak Businesses in Latest Global Retreat
Tesco agrees to sell its Czech and Slovak businesses, the latest step in its retreat from overseas markets.
Key points
- The sale of Tesco's Czech and Slovak businesses is valued at £1.5bn.
- Tesco's Czech and Slovak operations generated £2.9bn in revenue last year across 363 locations.
- Tesco's Hungarian arm remains, and the grocer says it is continuing to review all options for its future there.
Why it matters. Tesco's Hungarian business is still under review, and analyst Charles Allen says the 4.5 per cent tax on revenues has pushed many chains into loss.
Tesco is parting with its operations in the Czech Republic and Slovakia for £1.5bn, boss Ken Murphy told shareholders on Friday. The two markets generated £2.9bn in revenue last year across 363 locations. Murphy said the sale would let the grocer double down on its core UK and Irish businesses. Hungary is now the chain's last central European market, though it said it is still reviewing options there.
Latest updates
Tesco Agrees to Sell Its Czech and Slovak Businesses in Latest Global Retreat
Tesco has agreed to sell its Czech and Slovak businesses, according to a report by City AM. The deal is the latest in a series of exits that have shrunk the supermarket group's presence abroad over several decades. The sale leaves the UK as the one remaining core market for the retailer, City AM reported. The report did not give a sale price or buyer details in the material available.