Tesco sells all business in Poland to Netto
British retail giant Tesco announced the sale of business in Poland to Danish corporation Salling Group, the owner of the Netto network. The transaction, which is subject to approval by antitrust authorities, including the Office of Competition and Consumer Protection (UOKiK), includes the acquisition of 301 chain stores together with distribution centers and the company's headquarters for a total amount of PLN 900 million. Tesco stores will change to Netto within 18 months.
British Tesco decided to sell business in Poland after years of problems with operations in our country, which resulted in closing and selling stores. The commercial giant wants to focus on operations in other Central European countries – Czech Republic, Slovakia and Hungary. Thanks to the transaction, the number of Netto stores in Poland will increase almost twice.
“We have noticed significant progress in our operations in Central Europe, but we still see market challenges in Poland. Today's announced transaction allows us to focus on our activities in the Czech Republic, Hungary and Slovakia, where we have a stronger market position with good growth prospects and achieve margins, cash flows and returns that are significant for the Group,” Dave Lewis, CEO Tesco, said.
