The grocer is planning to offload its Thai and Malaysian operations for £8.2bn, which would trigger a potential £5bn return of capital to shareholders.
Another £2.5bn worth of proceeds from the sale will be used for the elimination of the pension funding deficit.
The deal, alongside plans to sell of the Polish division, comes as part of a wider strategy to get focus on the UK and Ireland business while it will also strengthen the firm’s financial position.
Covering around 2,000 stores under the Lotus brand, the takeover was agreed earlier this year.
In its half-year results published last month, the FTSE 100 firm hiked its dividend 21% after reporting strong sales, profits and cashflow thanks to a surge in demand during the pandemic.