Lidl-owner among bidders for Tesco's Central European business, FT reports

By Reuters News

Sept 23 (Reuters) - German discount retailer Lidl's owner Schwarz Group is among the potential bidders for Tesco's > Central European business as Britain's largest food retailer looks to retreat from overseas markets, the Financial Times reported on Wednesday.


Here are some more details:

  • Dutch supermarket chain Ahold Delhaize AD.AS and Polish discount retailer Biedronka also intend to bid for Tesco's continental European business, which spans stores in Hungary, the Czech Republic and Slovakia, the report said, citing people familiar with the matter.

  • Analysts view the grocery chain's 561 stores in Central Europe as an anomaly and contrary to its strategy to prioritise its home market.

  • Tesco leads in market share for grocers in the UK, according to market researcher Worldpanel by Numerator, having invested heavily in the region.

  • However, soft consumer sentiment amid the conflict in the Middle East has pressured Tesco's sales in the UK, where it reported slower sales growth for the first quarter.

  • In July, media reports emerged that Tesco was considering the sale of its Central European operations, having divested nearly all of its overseas assets since 2015 to focus on its core UK market.

  • Tesco is working with Goldman Sachs GS.N and Citi C.N as advisers for the sale, the FT report said.

  • Schwarz Group, Ahold Delhaize, Biedronka and Citi did not immediately respond to Reuters' request for comment. Goldman Sachs and Tesco declined to comment.

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