Tesco considering sale of European business – report

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Tesco is considering the sale of its central and eastern European operations, according to reports.

The Financial Times reported that the UK’s largest supermarket group is exploring a move to find a buyer for the division and focus further on its core UK and Ireland operation.

A Tesco spokesman said: “We never comment on rumour or speculation.”

A potential sale would cement the group’s focus on the UK and Ireland, and bring an end to previous ambitions to be a global retail giant.

Tesco launched its central and eastern European operation in Hungary in 1995 as part of a global expansion effort.

However, the business has since drawn back from its international operations, most recently selling its business in Thailand and Malaysia for around £8 billion in 2020.

Its stores on mainland Europe are currently the group’s only substantial operation outside of the UK and Ireland.

In the region, Tesco currently employs around 22,000 people across 56 stores in Hungary, the Czech Republic and Slovakia.

Tesco’s European arm saw sales grow by 0.8% to £1.14 billion in the quarter to the end of May.

It came as the wider group saw growth slow amid increased “uncertainty” linked to the conflict in the Middle East.

Shares in the group were marginally lower following the report.