Ahold Delhaize agrees to acquire Tesco's Czech and Slovak operations for €1.2 billion

More than 360 owned stores and 14,000 employees to be integrated

Ahold Delhaize has signed an agreement to acquire 100% of Tesco's Czech and Slovak operations, according to the press release published on 30 October 2026. The commitment has been made, but the transaction will only be completed once regulatory approvals have been obtained.

The scope concerned comprises more than 360 supermarkets, hypermarkets and convenience stores operated directly, as well as more than 100 franchised stores. It generates approximately €3.5 billion in sales, an amount that corresponds to its revenue and not to the price paid, and employs more than 14,000 people.

According to the group, once the completion, integration and reshaping of the store network are achieved, the combined entity formed by Albert and Tesco Czechia is expected to become the leading food retail banner in the Czech Republic in terms of market share. In Slovakia, the transaction is expected to position Ahold Delhaize among the leading players.

The retailer relies on the track record of Albert, which has already taken over store networks and converted them to its own model. For customers, it plans an omnichannel offer, renovated stores that are technologically modernised, and a harmonised assortment and loyalty programme.

The combination is part of the group's "Growing Together" strategy. Ahold Delhaize expects economies of scale, operational efficiencies, strengthened purchasing power and a sharing of expertise, with the aim of reinvesting in the offer, employees and local communities.

Enterprise value of €1.7 billion after lease restatement

Ahold Delhaize will pay an enterprise value of approximately €1.2 billion. Restated for lease contracts under IFRS 16, this value reaches approximately €1.7 billion.

On this basis, the price implies a multiple of approximately 7.2 times EBITDA for the last twelve months. Including the expected synergies, this multiple falls to 5.0 times: the gap between the two ratios measures the weight the group places on synergies in the financial equation of the transaction.

These synergies, which according to the group are associated with significant revenue growth, are expected to generate room for manoeuvre to invest in the commercial offer, digital, sustainable development and employee experience in both countries.

From an accounting standpoint, the combination is expected to be neutral for the group's earnings per share in the first year following completion. The consideration will be covered by financing already committed and by existing resources.

Ahold Delhaize states that, given the strength of its balance sheet, the transaction will not have a significant impact on its capital allocation and shareholder return policies. The group, which regularly publishes updates on its share buyback programme (the latest dated 27 October 2026), says it remains committed to all of its ambitions in this area.

Completion expected in the fourth quarter of 2027

Completion of the transaction is expected in the fourth quarter of 2027, once the usual conditions have been met, in particular the obtaining of regulatory approvals. Further details will be provided during the conference call with analysts dedicated to the third-quarter 2026 results, on 4 November at 10 a.m. (Central European Time).

Frans Muller, Chief Executive Officer of Ahold Delhaize, whose shareholders approved his designated successor, Thierry Garnier, on 13 October 2026, described the acquisition as an "important step" to strengthen the group's position in Central and South-Eastern Europe. He described Slovakia as an "attractive adjacent market".

BofA Securities is acting as financial adviser to Ahold Delhaize. The firm CMS is leading the legal aspects of the transaction, while Crowell & Moring LLP and Havel & Partners are handling regulatory matters.