// Tesco to complete sale of Asia business
// It is selling its Thai and Malaysian business to buyer CP Retail Development Company
// The acquisition was given the green light by Thai authorities last month
Tesco is set to complete the £8 billion sale of its Thai and Malaysian business to buyer CP Retail Development Company.
The acquisition was given the green light by Thai authorities last month and CP Group has now confirmed it is “satisfied with the formal notice of approval”.
The Big 4 grocer said it now expects the disposal to be formally completed by December 18.
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The acquisition will result in a £5 billion return to Tesco’s shareholders via a special dividend, while £2.5 billion will be invested into the grocer’s pension fund.
Tesco has offloaded a host of overseas markets since former boss Dave Lewis took the helm in September 2014.
Lewis sold Tesco’s Homeplus business in South Korea for £4 billion back in 2015 and earlier this year struck a deal to offload its operations in Poland for £181 million.
Tesco continues to operate stores in Central Europe across Hungary, the Czech Republic and Slovakia.
“I would like to thank all our colleagues in Asia for their hard work and dedication to our customers over many years,” Tesco chief executive Ken Murphy said.
“They have built a very strong business. I’m confident that the agreement with CP Group will ensure that they are well setup 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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