Breaking News! PTT Targets Tesco, Aiming to Compete with CPALL and BJC!
PTT has been reportedly aiming to join the bidding of Tesco Lotus in a deal which is expected to be worth $9 billion (approx. 273 billion baht).
Reuters has made a report on the morning of January 9, 2020, that PTT Public Company Limited (PTT) would join the bidding of Tesco Lotus in a deal which is expected to be worth $9 billion (approx. 273 billion baht).
At the end of last month, Berli Jucker Public Company Limited (BJC) and CP All Public Company Limited (CPALL), and Central Group were reportedly interested in the bidding.
The share price of BJC and CPALL plunged on the following business day after the news broke out. BJC slipped 2.9% while CPALL fell more than 3% on December 30, 2019. The acquisition of Tesco would give a dominant power for BJC, who initially owns BigC, in the retail market while CPALL, who owns MAKRO, would complete its retail business structure by having 7-Eleven as convenient stores, Makro for fresh foods and Tesco Lotus as retail stores.
On the other hand, taking control of Tesco would give PTT a diversification in the business, while also building a profile for its upcoming subsidiary that will be listed in the stock market this year, PTTOR.
Update: PTT’s CEO Chansin denied the news, saying that acquiring Tesco is not the company business strategy.