Tesco Weighs Sale of European Operations, Signaling End to Global Ambitions
The UK's largest supermarket is reportedly consulting with bankers on divestment of its Hungary, Czech Republic, and Slovakia stores.
Tesco is reportedly exploring the sale of its European supermarket operations, a move that would mark the end of the British grocer's long-standing efforts to build an international presence. The company is working with investment bankers to assess options for its businesses in Hungary, the Czech Republic, and Slovakia, according to a report by the Financial Times. These European divisions collectively employ over 22,000 people and operate 561 stores, contributing approximately 4 percent to Tesco's profits last year.
This potential divestment signifies a significant shift for Tesco, which has been divesting from various international markets since 2015. In recent years, the supermarket chain has sold non-core assets, including its retail banking arm to Barclays in 2024 and its South Korean Homeplus business in 2015 for £4.2 billion. The company is facing intense competition within the UK market, which may be influencing its strategic decisions regarding its international footprint.
Tesco declined to comment on the reports, stating, "We never comment on rumour or speculation."