Tesco has opened a strategic review of its central and eastern European operations, examining potential sale options for its businesses in Hungary, the Czech Republic and Slovakia, according to a recent report citing people familiar with the situation. The company is said to be working with bankers as it evaluates the future of those units, which together employ in excess of 22,000 staff.
A disposal of these assets would leave Tesco with a presence confined to the UK and Ireland, concluding a gradual pullback from the international footprint it built over roughly 30 years. The group first established its central and eastern European presence in Hungary in 1995.
The move follows a long program of international disposals that accelerated after a 2014 accounting scandal. Since then, Tesco has sold several overseas businesses: the South Korean Homeplus operation was sold for ;4.2 billion in 2015, while a combined Thailand and Malaysia unit was disposed of for ;8 billion in 2020. Earlier, Tesco closed its U.S. Fresh & Easy venture in 2013, a decision that cost shareholders in excess of ;1 billion.
More than a decade ago, the company briefly contemplated selling this central and eastern European division as part of broader asset sales overseen by a former chief executive who led efforts to stabilise the group after the 2014 accounting issues. The current review is being carried out with external advisers, though no outcome has been announced and it remains unclear whether a formal sale process will be launched.
While the company considers its options, several aspects are notable:
- The portfolio under review comprises operations in three countries - Hungary, the Czech Republic and Slovakia - with combined employment of more than 22,000 people.
- A sale would narrow Tesco's operating footprint to the UK and Ireland, representing an exit from markets the group once served across a wide international span.
- The potential divestment sits within a pattern of post-2014 restructuring that has seen the group sell several major overseas assets.
No formal confirmation of a transaction has been made public and the company continues to assess strategic options with advisers.