Lidl owner Schwarz Group joins race to buy Tesco's 561 Central European stores as initial bids are due by month's end

From the Newshound archive · first published 23 September 2026 · last updated 24 September 2026.

Tesco's retreat from overseas markets is accelerating as Schwarz Group, the German giant behind Lidl, emerges as a frontrunner to acquire the British supermarket's operations in the Czech Republic and Slovakia. Dutch chain Ahold Delhaize and Polish discounter Biedronka, owned by Jerónimo Martins, are also preparing bids. Goldman Sachs and Citi are advising Tesco on the sale, with initial offers due by the end of September.

Tesco's Central European division spans 561 stores across Hungary, the Czech Republic and Slovakia, generating £4.5bn in revenue but only £115m in adjusted profit last year.

Hungary is expected to be sold separately, with government price controls and taxes on foreign retailers making a deal there significantly harder to clinch.

Chief executive Ken Murphy previously called the European business 'an integral part of the group' — a stance Tesco has now quietly abandoned as it doubles down on its dominant 28.2% share of the UK grocery market.