Tesco has sold its businesses in Thailand and Malaysia for $10.6bn (£8.2bn) to a combination of CP Group entities.
The supermarket giant says it intends to return £5bn to shareholders following the sale.
In a statement released by Tesco this morning, the retailer said the sale will “de-risk the Tesco business” by making £2.5bn pension contribution.
This is “expected to eliminate the current funding deficit and significantly reduce the prospect of having to make further pension deficit contributions in the future”, the retailer said.
The sale will mean a “stronger focus” will be placed on its UK, Ireland and Central Europe businesses.
Dave Lewis, chief executive of Tesco, said: “Following inbound interest and a detailed strategic review of all options, we are announcing today the proposed sale of Tesco Thailand and Tesco Malaysia.
“This sale releases material value and allows us to further simplify and focus the business, as well as to return significant value to shareholders.
“I would like to thank all of our Tesco Thailand and Tesco Malaysia colleagues for their dedication, professionalism and service to our customers, which has resulted in the creation of such a strong business.
“I am confident that the agreement we have reached with CP Group presents an exciting opportunity for their continued success.”
The sale is expected to complete in H2 2020.
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