Tesco has acquired convenience retailer Leader Price in Poland in a deal worth £72m.

Leader Price is part of the French retailer Casino and entered Poland in 2000. It operates 220 stores in the country, employing 2,200 people and had sales of £167m in 2005.

Casino has already committed to selling E2bn worth of its international assets by the end of the year in order to reduce its net debts. Last week reports suggested that both Tesco and French retailer Carrefour were interested in parts of the business.

Tesco said that the deal, which is subject to regulatory approval, would help it to grow its business in the highly fragmented and competitive Polish market.

Tesco entered Poland in 1995 and is the market leader there, operating more than 100 stores.

Kevin Grace, chief executive of Tesco Poland, said: “This deal is good news for customers. Convenience, low prices, service and quality have become the hallmark of Tesco in Poland and we look forward to bringing these benefits to more communities.”

He added: “After ten years of trading in Poland, Tesco has built up a strong local business employing more than 20,000 people and working with more than 1,500 suppliers.”

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