(Bloomberg) -- Tesco Plc agreed to sell its business in Poland to Danish retailer Salling Group A/S, as the U.K.'s largest supermarket operator focuses on its domestic market in a consumer landscape overturned by the coronavirus.
The U.K. grocer said it expects proceeds of about 165 million pounds ($207 million) from the sale of 301 stores, as well as distribution centers and office facilities. Tesco said it has also sold 22 other sites in Poland for about 200 million pounds over the past year and a half.
The shares rose as much as 1.2% early Thursday in London.
Tesco's Polish business has struggled amid intensifying competition, especially in general merchandise, and a reduction in store-opening hours. The company has been scaling back its overseas presence in recent years, pulling out of the U.S. in 2013 and South Korea two years later.
Earlier this year, just as Covid-19 took hold, Tesco sold its operations in Thailand to Charoen Pokphand Group for $10.6 billion in a deal that will fund large cash returns to shareholders.
Chief Executive Officer Dave Lewis has overseen the sales in his last few months at the helm. Lewis, who is credited with turning around Tesco's operations since he took charge in September 2014, will be replaced by Ken Murphy, who joins from Walgreens Boots Alliance Inc., in October.
Bloomberg reported last year that the supermarket operator had initiated a review of the Polish arm.
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