U.K. retail chain Tesco is selling its Polish business, the supermarket group has announced, a move that will leave its Central European business focused on the Czech Republic, Hungary and Slovakia.
The Polish News Agency (PAP), Polish Radio and Reuters, among others, reported on June 18 that the buyer of Tescoʼs 301 Polish stores is the Danish Salling Group A/S.
The pair agreed a PLN 900 million enterprise value for the business, equivalent to about GBP 181 mln, and Tesco said net proceeds were expected to be GBP 165 mln (EUR 182.8 mln) in cash.
“We have seen significant progress in our business in Central Europe, but continue to see market challenges in Poland,” Tesco!s outgoing CEO Dave Lewis said in a statement.
The Danish company, which said it expects acceptance for the plan to come through before the end of the year, will have 687 shops in Poland after the transaction, making it the third largest retailer in the country after Lidl, which has 720 shops, and clear leader Biedronka, which has more than 3,000 shops.