Tesco, the UK's largest supermarket, is reportedly considering the sale of its operations in Hungary, the Czech Republic, and Slovakia. Grocery rival Lidl is understood to be among the interested parties.
This potential exit from Central Europe would follow Tesco's previous withdrawals from markets including France, Japan, and the United States. The supermarket's European division contributed £4.5bn to its total revenue of £66.6bn last year.
Analysts suggest that a sale of these European operations would be a logical strategic move, allowing Tesco to simplify its group structure and focus capital on the UK and Ireland markets. However, some also caution against selling a valuable asset too cheaply, as Tesco is not under immediate pressure to exit.
The supermarket is expected to provide an update to shareholders on Thursday, where it could confirm this potential move. Tesco is also reportedly considering a takeover bid for Majestic Wines, which would be its first acquisition since buying wholesaler Booker in 2017.