On October 30th, Ahold Delhaize announced an agreement to acquire all of Tesco's operations in the Czech Republic and Slovakia, in a transaction aimed at strengthening the group's position in Central Europe and establishing a significant presence in the Slovak market.

The business represents an enterprise value of approximately €1,2 billion, equivalent to €1,7 billion on an adjusted basis after recognition of the lease agreements, according to accounting standard IFRS 16. The distinction between the two values results from the accounting treatment of the lease agreements and does not represent two different transactions.

More than 460 establishments

The acquired operations include more than 360 supermarkets, hypermarkets and convenience stores directly managed by Tesco, in addition to more than 100 franchised establishments.

Across both countries, the businesses represent annual sales of approximately 3,5 billion euros and employ more than 14 workers.

The acquisition will allow Ahold Delhaize to significantly increase its scale in the region, benefiting from the presence of the Albert brand in the Czech Republic. According to the group's expectations, the combination of businesses, after integration and restructuring of the retail network, should create the leading Czech food retail operator in terms of market share.

In Slovakia, the operation represents an opportunity to enter an adjacent market, where the company intends to develop a commercial proposition supported by the capabilities and experience of its European operations.

Scale, logistics and suppliers

Ahold Delhaize identifies development opportunities associated with its larger commercial size, economies of scale, and the integration of operational capabilities. The group expects to strengthen its logistical efficiency, negotiating power, and collaboration with suppliers, using some of the anticipated synergies to invest in digitalization, sustainability, and improving the customer experience.

The operation may also allow for the harmonization of certain commercial and technological structures, although the specific conditions for integration have not yet been announced.

For Tesco, the sale represents a reorganization of its international presence and a concentration of resources in other operations.

Completion is expected by the end of 2027.

The transaction is subject to regulatory approvals, including an assessment of its effects on competition.

Ahold Delhaize expects to complete the acquisition in the fourth quarter of 2027, after the usual conditions for this type of transaction have been met. Until that date, the businesses will continue to operate under their current structures.