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

Lidl-Owner and Rivals Eye Tesco’s Central European Stores in Major Sale

Potential Bidders and Strategic Implications for Tesco

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.

Key Details of the Tesco Central European Sale

Here are some more details:

Interested Bidders and Market Coverage

• Dutch supermarket chain Ahold Delhaize 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.

Analyst Perspectives and Market Strategy

• 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’s Market Position and Recent Performance

• 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.

Background on Tesco’s Overseas Asset Divestment

• 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.

Advisers and Official Comments

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

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

Reporting Credits

(Reporting by Simone Lobo in Bengaluru; Editing by Shreya Biswas)