When the dust settled between three of Thailand’s wealthiest families, it was the one with the most to clinch British giant hypermarket chain Tesco’s business in Thailand and Malaysia.
A week after it submitted one of three bids, Tesco said in a statement today that the business units would be sold to CP Group in a deal valued at up to US$10.6 billion.
“The Disposal will further simplify the Tesco Group, enabling a stronger focus on driving cash generation and returns to shareholders from our retail businesses in the UK and Ireland and in Central Europe,” the British retailer said in the statement.
CP, or Charoen Pokphand, is one of the kingdom’s largest conglomerates with holdings in retail, agribusiness, real estate and more. Its subsidiaries include C.P. Retail Development, Charoen Pokphand Holding, CP All and C.P. Merchandising. Owners of the nation’s roughly 10,000 7-Eleven stores, it would be difficult to spend a day in Thailand without giving CP money.
In Thailand, the deal essentially returns the stores to CP. Two decades ago, Tesco entered the Thai market by buying up CP-owned Lotus supercenters, which then became Tesco Lotus. In Malaysia, the company started operating in 2002 under the name Tesco Malaysia as part of a joint venture with Sime Darby Berhad.
CP is owned by the Chearavanont family. The battle for Tesco also drew bids from Charoen Sirivadhanabhakdi (ThaiBev) and the Chirathivat clan behind Central Group.
Related
Reader Interactions