Tesco has nearly completed the breakup of its once-sprawling global retail empire with the £1.5bn sale of its Czech and Slovak stores.
Britain's biggest grocer ended 30 years of operations in the two Central European countries through a deal with Dutch supermarket giant Ahold Delhaize.
That leaves only Tesco's Hungarian business in an international division that once had strongholds in 17 foreign countries .
However, the company has steadily withdrawn from overseas territories over the past 15 years to focus on its core business in the UK.
Only 190 Irish supermarkets are expected to remain part of its estate outside the UK.
Tesco built a substantial overseas network in the 1990s and 2000s.
Its foreign offshoots included stores in China, India, Malaysia, Thailand, Turkey and the United States, where an ill-fated attempt to establish its Fresh & Easy brand ended with its sale in 2013.
The businesses in South Korea, Thailand and Malaysia were sold in 2015, while its remaining stake in its Chinese joint venture was offloaded in 2020.
Tesco operates more than 360 supermarkets, hypermarkets and convenience stores in the Czech Republic and Slovakia, and 114 franchise stores in the Czech Republic.
Tesco bought the business in 1996 when it purchased the regional operations of the American retailer Kmart for $117.5m (£88m).
Last year the two territories generated sales of around £2.9bn and accounted for the bulk of the £115m operating profits made by the Central European division. The Czech and Slovak businesses together employ around 14,000 people.
However, in its latest annual report, Tesco flagged "increased competition, particularly in Slovakia and ongoing regulatory pressure".
The stores sold a range of locally sourced products, including, in Slovakia, live carp kept in tanks before Christmas, although the practice ended in 2023 after protests by animal rights groups.
Ken Murphy, the chief executive of Tesco, said: "The transaction will further simplify the group, increasing our focus on our core UK and Irish businesses and supporting our continued investment in our food-first retail ecosystem and the capabilities that will drive future growth, while enabling a further return of capital to shareholders."
In addition to the stores, the sale includes offices and distribution centres in Kralupy, Czech Republic, and Prešov and Beckov, Slovakia. The sale is expected to be completed in the fourth quarter of next year.
Tesco will receive around £1bn in cash, with most of the proceeds returned to investors through a buyback.
Tesco said it would "continue to review all options for the future of our business in Hungary".
Tesco shares rose around 1.5pc after the deal.
