CP Group Acquires Tesco Thailand/Malaysia at ฿338bn to Further Enhance Retail Biz!

Charoen Pokphand Group or CP Group has won the bidding to acquire Tesco Lotus both stores in Thailand and Malaysia at the total value of Baht 338 billion.

The acquisition was made through three companies of CP Group; 1) CP All Public Company Limited or CPALL (40%) 2) Charoen Pokphand Holding Co., Ltd. (40%) and 3) C.P. Merchandising Co., Ltd. (20%) to hold 86.9% in Tesco Stores (Thailand) Limited and 100% of Tesco Stores (Malaysia) Sdn. Bhd.

Business Overview of Tesco Thailand and Subsidiaries

Tesco Thailand engages in the business of holding shares in other companies. Ek-Chai is its subsidiary which engages in a range of retail trading formats under the Tesco Lotus brand in Thailand and operates different retail trading stores, granting lease of space in shopping malls and providing other services. Ek-Chai has established itself as a well-known and trusted consumer brand in the Thai retail sector.

Retail stores under Tesco Lotus brand in Thailand include 214 hypermarkets, 179 Talad Lotus and 1,574 Tesco Express as well as leased space in 191 malls (information as of end of August 2019).

 

Business Overview of Tesco Thailand and Subsidiaries

Tesco Malaysia operates the retail trading business under Tesco brand in Malaysia. It has 46 hypermarkets, 13 supermarkets and 9 convenience stores (information as of end of August 2019) which sell consumer products. At present, Tesco Malaysia has been developed into one of Malaysia’s leading retailers of consumer products.

In addition, Tesco Malaysia also operates the business of granting lease of space in 56 shopping malls.

 

Expected Benefits to the company

1) The company will own a complementary retail business in Thailand which offers a range of retail store formats that complement the company’s different existing formats with favorable operating results, and will enable the company to operate a wider range of outlets, including wholesale cash-and-carry, and retail formats (hypermarkets, supermarkets and convenience stores).

2) It will enhance innovative consumer solutions with opportunities in the new economy businesses.

3) The business acquisition in Malaysia will offer an entry into Malaysia’s major retail markets.