Tesco to sell Czech, Slovak stores for €1.7bn

Tesco said Friday it plans to sell its food retail operations in the Czech Republic and Slovakia to Dutch retailer Ahold Delhaize for €1.7 billion ($1.9 billion), ending about 30 years in the two markets if regulators approve the deal.

Britain's biggest retailer said it hoped to complete the sale in the second half of next year. Tesco said the transaction would help it focus on its core UK and Irish businesses.

The company expects cash proceeds of €1.2 billion before tax and other transaction costs, with most of the money to be returned to shareholders through a share buyback.

Tesco said it would continue to review options for its business in Hungary. Its shares rose 1.2% in Friday trading.

Ahold Delhaize said it would take on a network of more than 460 stores with more than 14,000 employees. It said adding Tesco's stores to its Albert brand would make it the leading grocery brand in the Czech Republic by market share and give it a leading brand position in Slovakia.