Tesco makes 20% of its profits overseas

The deal will see the UK's Tesco exchange its six stores in Taiwan for Carrefour's 11 outlets in the Czech Republic and four in Slovakia.

Tesco is also to pay the French firm 57.4m euros (�39m), as both companies exit countries in which they have a low market share.

Andrew Higginson, Tesco's finance director, said it still intended to expand elsewhere in Asia.

Asian commitment

Tesco, the UK's largest supermarket group, has stores in Thailand, Malaysia, South Korea and China.

After the group's [Carrefour's] exit from Mexico and Japan, we are not surprised for one moment by this fresh exit from two central European countries Retail analyst Guy Francheteau Tesco's share price Carrefour's shares

Taiwan was the one Asian location in which it was struggling to make inroads.

"We've got a very good position in Asia and we're pressing on," said Mr Higginson.

The addition of Carrefour's Czech and Slovak stores consolidates Tesco's strong position in eastern Europe.

It already has outlets in the Czech Republic and Slovakia, plus Hungary and Poland.

Tesco makes 20% of its profits overseas.

Carrefour, France's largest supermarket group and the world's second largest behind the US's Wal-Mart, has already recently pulled out of Mexico and Japan.

"After the group's [Carrefour's] exit from Mexico and Japan, we are not surprised for one moment by this fresh exit from two central European countries," said retail analyst Guy Francheteau at brokers Fideuram Wargny.