Tesco said it will sell its Czech Republic and Slovakia businesses to Dutch retailer Ahold Delhaize for an enterprise value of €1.7 billion, equivalent to £1.5 billion and about $1.90 billion, on a cash- and debt-free basis. The transaction covers all stores and offices in both countries, as well as distribution centres in Kralupy, Presov and Beckov. Tesco expects net cash proceeds of €1.2 billion, or £1 billion, before tax and other transaction costs, with most of the proceeds earmarked for an additional share buyback. The deal requires antitrust and other regulatory approvals and is expected to close in the second half of 2027. Tesco said the transaction should have a neutral effect on earnings per share and the Group Net Debt/EBITDA ratio after the buyback is completed. The businesses generated combined sales of £2.9 billion and accounted for the majority of the £115 million adjusted operating profit reported by Tesco's Central European region in the prior 52-week period. Tesco has operated in the two countries for 30 years and said the sale will sharpen its focus on its core UK and Irish businesses and support further investment in its food-first retail ecosystem.