The Dutch retail chain Ahold Delhaize has announced it will acquire 100 per cent of Tesco’s Czech and Slovak business in a €1.7bn deal.

In a statement, Ahold Delhaize said the move will expand its presence in the region, bringing over 360 convenience stores, supermarkets and hypermarkets along with more than 100 franchise stores into its estate.

Tesco Czechia and Slovakia currently employs over 14,000 people and generates €3.5 billion in sales. The deal will also include Tesco’s stores and offices in Czechia and Slovakia, alongside its distribution centres in Beckov, Kralupy and Presov.

Ahold Delhaize said that following the acquisition, its local brand Albert and Tesco Czechia will become the leading supermarket brands in the region

Frans Muller, CEO of Ahold Delhaize: “This acquisition is an important step in strengthening our position in the Central and Southeastern European region. It brings together highly complementary businesses with strong local market expertise and gives us the opportunity to expand into Slovakia, an attractive adjacent market.”

Ken Murphy, chief executive of Tesco, said: “For Tesco, the transaction will further simplify the Group, increasing our focus on our core UK and Irish businesses and supporting our continued investment in our food-first retail ecosystem and the capabilities that will drive future growth, while enabling a further return of capital to shareholders.”

The deal is subject to regulatory approval, with Crowell & Moring LLP and Havel & Partners acting as Ahold Delhaize’s regulatory counsel. Tesco said it expects to hand the majority of the net cash proceeds to shareholders.

Both parties expect it to close in the fourth quarter of 2027.

Margaret Versteden-van Duijn, chief executive of Ahold Delhaize Europe & Indonesia, said that she is looking forward to working with local teams who understand their regional markets well.

Versteden-van Duijn started in her current role at the start of October, having previously held the role of chief executive for the Dutch retail brands Albert Heijn, Etos, and Gall & Gall, which are owned by Ahold Delhaize.

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