Tesco linked to Ahold Poland bid
UK supermarket giant considering ‘good investments’
April 4 2003
Tesco has again been linked to a possible bid for the Polish supermaket business owned by Ahold.
The UK’s biggest retailer told German grocery trade paper Lebensmittel Zeitung: “we are ready to make good investments,” when asked to comment on renewed speculation that Tesco hopes to combine Ahold’s 120-strong supermarket chain in Poland with its own central European operation.
Netherlands-based Ahold, which is being investigated over accounting irregularities in its US Foodservice business, announced yesterday that it plans to sell its entire South American operation, and is also in talks to sell its Malaysian chain.
When the Ahold scandal broke in February, Tesco was reported to have considered a bid for the entire business. It described that specualtion as ‘surprising,’ but a move to expand its business in Poland, seen by Tesco as a key area for expansion, would be a logical step.
Tesco bought the 13 Hit hypermarkets in Poland from German operator Dohle last year. It currently has 46 hypermarkets and supermarkets in Poland, as well as stores in the Czech Republic, Slovakia and Hungary. The company said last year that it expects about half of its total retail space could be found outside of the UK by the end of this year.
Tesco would almost certainly find itself in an auction of the Ahold stores were put up for sale. French supermarket operators Carrefour and Casino, both also active in Poland, have indicated their interest in the Ahold stores.
