Tesco considering sale of Asian business
With Tesco CEO Dave Lewis set to step down from the global role in 2020, it seems one of his last acts as head of the retail giant could be his most decisive: selling off the supermarket's Asian divisions.
10 December 2019
Tesco PLC has confirmed that it is considering selling its Asian business, following an approach from a third-party investor.
The retailer, which has almost 2,000 stores in Thaland and 74 in Malaysia, confirmed in a brief statement that it had received “inbound interest”, and that it had commenced a review of the strategic options for its Asian interests, “including an evaluation of a possible sale of these businesses”.
Tesco’s Thai and Malaysian operation accounts for around 10% of its overall sales, approximately £4.9bn (€5.4bn) in 2018. This result represented a 6% drop year-on-year, due to supply chain problems and a dispute over the Thai government’s “welfare cards”, which were unredeemable in Tesco stores.
Dave Lewis announced earlier this year that he would step down as CEO, five years after taking the role when Tesco was in the midst of a massive crisis. In that time, he steered the company from a £6.4billion loss to a £2bn profit.