Tesco and Carrefour swap assets
Tesco and Carrefour have announced an asset swap involving stores and operations in the Czech Republic, Slovakia and Taiwan, subject to the usual regulatory approvals.
As part of the deal, 11 Carrefour stores in the Czech Republic and 4 stores in Slovakia will be transferred to Tesco for a combined enterprise value of Euro189.4m. In return, Carrefour will receive 6 Tesco stores and 2 sites in Taiwan, of an enterprise value of Euro132m. This is part of a strategic move by Tesco to strengthen its businesses in Central Europe.
The swap provides Tesco with the opportunity to grow its businesses in the highly competitive Czech and Slovak markets and exit the Taiwanese market where it is lacking critical size.
Andrew Higginson, Tesco Group Finance and Strategy Director said “This is a positive strategic move for Tesco which will allow us to focus on doing an even better job for customers in Central Europe and our other Asian markets.
We have a strong track record of bringing benefits locally. Today’s announcement will help us bring these benefits to new customers, staff and suppliers.
We are clearly sad to see our Taiwan staff move from the Tesco group. They have done an excellent job securing a small part of a highly competitive market. They will be an asset for Carrefour in the future’.
