The owner of Lidl, Schwarz Group, is among potential buyers for Tesco’s Czech and Slovakian operations as the UK retailer retreats from overseas markets. Dutch chain Ahold Delhaize and Polish discounter Biedronka are also expected to bid. Tesco’s continental European division generated £4.5bn revenue but only £115mn adjusted operating profit last year.

The company plans to sell Czech and Slovakian assets separately from Hungary, where government policies complicate a sale. Schwarz Group already operates Lidl and Kaufland in the Czech Republic and Slovakia. Ahold Delhaize is active in the Czech Republic, and Biedronka, owned by Jerónimo Martins, entered Slovakia last year.

Initial bids are due by end-September. Tesco’s Eastern Europe business has 561 stores and faces pressure from competition and Hungarian price controls introduced under Viktor Orbán’s government, which remain under review by Prime Minister Péter Magyar. Tesco has exited South Korea, Thailand, Malaysia, and the US Fresh & Easy venture since 2013.

Ken Murphy, Tesco’s CEO, has strengthened the UK position via loyalty promotions and price-matching against Aldi. Tesco, Schwarz Group, and Ahold declined to comment; Biedronka was not immediately available.