Tesco is working with financial advisers to explore strategic options for its European business, spanning Hungary, the Czech Republic and Slovakia, including a possible sale, according to people familiar with the matter cited by the Financial Times. The division comprises 561 stores and more than 22,000 employees, and remains Tesco’s only significant market outside the UK and Ireland following the divestment of most other international operations in recent years.
The business generated GBP 4.5 billion in revenue and GBP 115 million of Tesco’s GBP 3.2 billion adjusted operating profit in the most recent financial year, with the company’s annual report citing falling profitability amid intensifying competition in Slovakia and rising regulatory pressure.
Tesco, approached for comment by the Financial Times, said it does not comment on market speculation. No formal decision has been announced.
(dp)
