Friday, October 2, 2020

Tesco sells Polish business citing ‘market challenges’

Tesco is selling its polish business unit in Poland amid market challenges as it looks to hone its focus in Central Europe.

The sale to Salling Group A/S includes the sale of 301 stores together with the associated distribution centres and head office.

“We have seen significant progress in our business in Central Europe, but continue to see market challenges in Poland,” Tesco Chief Executive Dave Lewis.

“Today’s announcement allows us to focus in the region on our business in the Czech Republic, Hungary and Slovakia, where we have stronger market positions with good growth prospects and achieve margins, cashflows and returns which are accretive to the Group.”

He added: “We see this transaction as the best way to secure the future of the business for our colleagues and customers in Poland.”

Total enterprise value agreed for the transaction is PLN 900m (equivalent to £181m), with total net proceeds expected to be approximately PLN 819m (equivalent to £165m).

Tesco said that proceeds from the sale will be used for general corporate purposes.

The deal is subject to is subject to antitrust approval.

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 lockdown having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.
















Latest news

First half food & drink exports fall for first time in five years

UK food and drink exports for the first half of 2020 have fallen for the first time since 2020, a new industry report has...

Benefits of the new Cobot from Phoenix Handling Solutions

The new SRP Cobot from Phoenix Handling Solutions (PHS) is an extremely compact, versatile and fully automatic, low-cost modular robot palletising system, based on...

The role of heat exchangers in apple juice processing

Although the volume of apple juice consumed by Europeans is fairly consistent, in line with market trends for other juice products, the value of...

Food waste upcycling ripe for innovation, new white paper claims

Upcycling food waste into ingredients or products for human consumption could become standard practice, according to Oakland Innovation. As the world population grows, there’s increasing...

Japanese export win for Essex juice supplier

An Essex-based drink supplier that was founded over a century ago has secured a £500,000 deal to sell its organic fruit juices to Japanese...

River Cottage launches premium Kombucha range

River Cottage has launched a new premium range of Kombucha as demand for the fermented wellness drink booms in the UK. The launch sees brand...

Related news

First half food & drink exports fall for first time in five years

UK food and drink exports for the first half of 2020 have fallen for the first time since 2020, a new industry report has...

Benefits of the new Cobot from Phoenix Handling Solutions

The new SRP Cobot from Phoenix Handling Solutions (PHS) is an extremely compact, versatile and fully automatic, low-cost modular robot palletising system, based on...

The role of heat exchangers in apple juice processing

Although the volume of apple juice consumed by Europeans is fairly consistent, in line with market trends for other juice products, the value of...

Food waste upcycling ripe for innovation, new white paper claims

Upcycling food waste into ingredients or products for human consumption could become standard practice, according to Oakland Innovation. As the world population grows, there’s increasing...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close