Tesco sharpens UK focus with sale of Czech and Slovak businesses

The agreement marks another step in Tesco’s strategy of withdrawing from international markets and sharpening its focus on the UK. The supermarket group expects to return most of the net proceeds from the transaction, estimated at €1.2 billion before taxes and other expenses, to shareholders through an additional share buyback programme.

Valuation and Strategic Implications for Tesco

Analysts at Bernstein believe the transaction price is relatively high, making the deal more favourable to Tesco than to Ahold Delhaize.

Tesco’s Central European operations, which also include its business in Hungary, have long been viewed by analysts as an exception to the Group’s broader business model.

Since 2015, the UK retailer has sold almost all of its international assets, including operations in South Korea, Thailand and Malaysia, as part of its strategy to concentrate on its domestic market.

Financial Performance of the Two Markets

The Czech Republic and Slovakia generated combined sales of £2.9 billion ($3.9 billion) in the 2025/26 financial year.

The two countries accounted for the majority of Tesco’s £115 million in adjusted operating profit from its Central European operations.

This represents approximately 4% of the Group’s total profits, highlighting the relatively limited contribution of these businesses to Tesco’s overall profitability.