Thai billionaire Dhanin Chearavanont, through his company Chareon Pokphand Group, has reportedly secured the necessary funding to proceed with his planned acquisition of Tesco's business in Thailand and Malaysia. The required amount for the acquisition stands at around $10.6 billion, based on the enterprise value of the assets.

The acquisition of Tesco's business in Thailand and Malaysia is expected to allow Charoen to expand its dominance in the region's retail sector. For the deal, Chareon has hired Siam Commercial Bank, UBS, and JPMorgan Chase to underwrite the deal. Goldman Sachs, Greenhill, and Barclays Bank have been tapped as advisors for the transaction.

The three banks underwriting the deal revealed that they plan to syndicate the loan to fund the deal to different lenders within the region. Chinese banks have also expressed interest in participating in the syndication, a source close to the transaction had stated.

If the deal gets approved, it will be the largest acquisition deal in South East Asia, excluding Australia, this year. The scale of the deal will top the pending privatization of Wheelock & Co, which is estimated to be worth around $6.2 billion.

The deal will also be the largest domestic acquisition ever made by Dhanin and his company, marking a recapturing of the retail market that was taken over by Tesco during the Asian financial crisis. Tesco announced on Monday that it has agreed to the sale of its Thai and Malaysian business, including its debts, to Chareon. 

While the Chareon may have the fundings to back up the transaction, the deal itself will still have to be approved by Tesco's shareholders and antitrust regulators in Thailand and Malaysia.

Thailand's Office of Trade Competition Commission had expressed some concerns regarding the deal as it could potentially lead to a monopoly. Tesco currently has over 2,000 stores in Thailand under its Lotus brand. Meanwhile, Chareon holds the franchise of all 7-Eleven stores in the country. Combined, Chareon could take control of more than 59 percent of the country's grocery market.

Securing the massive funding required for the deal has been seen as a clear sign that investors are still willing to back Dhanin and his company despite the economic slump in the region. The recent viral outbreak has managed to exacerbate the already dire situation in the region. This is particularly true for China, a country that Chareon has placed heavy bets on, including recently purchased stakes in Chinese firms such as Citic Group, Zhenxin Bank, and Ping An Insurance.