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Tesco Reportedly Explores Sale of Central and Eastern European Operations
Summary
British supermarket giant Tesco is reportedly considering a sale of its operations in Hungary, the Czech Republic, and Slovakia. The move would complete the company's decades-long retreat from international markets, leaving it to focus on the UK and Ireland.
Tesco is exploring options for its business in Central and Eastern Europe, which could lead to a sale of its operations in the region, according to a report from the Financial Times. The British grocer is said to be working with bankers to review its divisions in Hungary, the Czech Republic, and Slovakia, which collectively employ over 22,000 people.
A sale would mark the final step in Tesco's withdrawal from its global expansion efforts, which began three decades ago. If the transaction proceeds, the company's business would be consolidated to its core markets in the United Kingdom and Ireland, ending its presence in continental Europe.
Tesco has been divesting its international assets for several years, a process that accelerated following a 2014 accounting scandal. The company sold its South Korean business, Homeplus, for £4.2 billion in 2015 and its operations in Thailand and Malaysia for £8 billion in 2020.
AdPrior to these sales, Tesco closed its unprofitable Fresh & Easy venture in the United States in 2013, which resulted in a loss of over £1 billion for shareholders. The company first established its Central and Eastern European presence in Hungary in 1995. According to the report, a potential sale of this division was also briefly considered more than a decade ago as part of a plan to stabilize the group's finances.