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Freshfields advises Tesco on $10.6bn sale of its businesses in Thailand and Malaysia

Freshfields Bruckhaus Deringer LLP (‘Freshfields’) has advised Tesco on the proposed sale of its businesses in Thailand and Malaysia to the CP Group. The transaction was finalised on 9 March 2020 following a competitive sale process. The transaction values the Thailand and Malaysian businesses at an enterprise value of c.$10.6bn (£8.2bn). Completion is expected in the second half of calendar year 2020, pending shareholder and regulatory approvals.

Following completion, Tesco intends to return c. £5bn to shareholders by way of special dividend and make a significant contribution of £2.5bn to its UK defined benefit pension scheme. The sale, comprising more than 2,000 stores in Asia, allows Tesco to de-risk and focus its business on core operations in the UK, Ireland and Central Europe.

The Tesco legal team was led by Group General Counsel Adrian Morris and M&A Legal Director Susan Howard.

The Freshfields team was led by partners Claire Wills, Simon Weller and Keir MacLennan. Antitrust advice was provided by partners Alastair Chapman and Alastair Mordaunt.

Freshfields London managing partner Claire Wills commented: ‘We were delighted to be able to support Tesco on this important transaction. Working seamlessly across a number of time zones on a highly competitive auction process, the team did an incredible job of advising our longstanding client on this successful sale.’

ENDS

Notes for Editors

About Freshfields Bruckhaus Deringer LLP
Freshfields Bruckhaus Deringer LLP is a global law firm with a long-standing track record of successfully supporting the world's leading national and multinational corporations, financial institutions and governments on ground-breaking and business-critical mandates. Our 2,800 plus lawyers deliver results worldwide through our own offices and alongside leading local firms. Our commitment, local and multi-national expertise and business know-how means our clients rely on us when it matters most.

The Freshfields team was led by: