Tesco handed £214m penalties on false accounting

Supermarket Tesco has agreed to a fine and compensation costs totalling £214 million ($268 million, 247 million euros) after an accounting scandal at Britain's biggest retailer, the Serious Fraud Office said Tuesday.

Under a deal struck with the SFO over an affair stretching back three years, Tesco will not face prosecution.

However, charges have previously been brought against three former Tesco executives, who face trial over alleged fraud and false accounting.

"Tesco has in principle reached a deferred prosecution agreement with the UK Serious Fraud Office regarding historic accounting practice," the supermarket giant said. This "is a voluntary agreement under which Tesco Stores Limited will not be prosecuted provided the business fulfils certain requirements.