Schwarz Group eyes Tesco's Central European stores in major acquisition bid
Schwarz Group, the owner of Lidl, is preparing an offer for Tesco's Czech and Slovakian outlets as the British retailer looks to sell its European operations.
Tesco is seeking buyers for its European business beyond the UK and Ireland, a segment that produced £4.5bn in revenue and £115m in adjusted profit last year. The Schwarz Group, which owns Lidl, is slated to make an offer for Tesco's operations in the Czech Republic and Slovakia, where the retailer runs 184 and 182 stores respectively. Competing suitors include Dutch retailer Ahold Delhaize and Polish discounter Biedronka.
This move follows Tesco's recent write-down of a Slovakian store by £75m due to intense competition. The sale would extend Tesco's withdrawal from several overseas markets it has exited over the past 15 years, such as France, Japan, and the United States. CEO Ken Murphy, who once called the European arm an "integral part of the group," now acknowledges the shift in strategy. Lidl’s own share of the UK grocery market has risen to over eight per cent, positioning it among the top six retailers.
Why it matters
The deal could reshape grocery competition in Central Europe and signal a major shift in Tesco's global strategy.
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