Tesco has confirmed the sale of its businesses in Thailand and Malaysia to C.P. Retail Development Company Limited.
CP Group has now received approval from authorities in Thailand, with the acquisition expected to complete on 18 December. Approval from Malaysian authorities has already been granted.
The move is expected to return around £5bn of net proceeds to Tesco shareholders via a special dividend and contribute £2.5bn to the supermarket’s pension scheme.
Tesco Group CEO, Ken Murphy said: “I would like to thank all our colleagues in Asia for their hard work and dedication to our customers over many years. They have built a very strong business.
“I’m confident that the agreement with CP Group will ensure that they are well set up for continued success. This sale allows us to focus on our businesses across Europe and to continue delivering for customers, make a significant contribution to our pension deficit and return value to shareholders.”
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