Ahold Delhaize Eyes European Expansion with EUR1.7 Billion Purchase of Tesco's Czech, Slovakian Businesses

06:06 AM EDT, 10/30/2026 (MT Newswires) -- Koninklijke Ahold Delhaize (AD.AS) agreed to acquire Tesco's (TSCO.L) operations in the Czech Republic and Slovakia, as the Dutch food retail group seeks to bolster its footprint in Central and Southeastern Europe. The deal represents a total enterprise value of 1.7 billion euros on a cash- and debt-free basis, with Tesco expecting to receive 1.2 billion euros in net cash proceeds before taxes and other transaction expenses, according to separate Friday filings. The British supermarket group intends to use most of its net cash proceeds to fund an "incremental" share buyback. Backed by committed financing and existing resources, the transaction is slated to close in the fourth quarter of 2027, pending regulatory approvals and other customary closing conditions. Once integrated and remodeled alongside Ahold Delhaize's local brand Albert, the portfolio, which includes over 360 self-operated stores, 100 franchise stores, and key distribution hubs across both countries, is expected to establish Ahold Delhaize as a leading grocer by market share in the two jurisdictions. The combined assets in the Czech Republic and Slovakia bring 3.5 billion euros in sales and over 14,000 employees. "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. We see significant potential to combine our European scale, capabilities and retail expertise to better serve customers and support sustainable long-term growth," Ahold Delhaize Chief Executive Officer Frans Muller said. Meanwhile, the deal supports Tesco's plans to simplify its structure as it focuses on its core UK and Irish markets. Tesco noted that its Hungarian operations are excluded from this sale and currently remain under strategic review. Ahold Delhaize and Tesco shares were over 1% higher in Friday midmorning trading in Amsterdam and London, respectively.