In December 2020, Tesco, Britain’s largest retailer, had divested its Malaysian business to the Thai group. To CP Group, Tesco retail chain sold its entire stake in Tesco Stores (Thailand) Ltd., as well as Tesco Stores Malaysia, for an enterprise value of US$10 million. Six billion dollars. Table of contents 1. Who is Tesco owner? […]
British Brand Tesco Retires From Southeast Asia As Thai Buyer Rebrands
A billboard for Tesco in Bangkok, Thailand.
(Nikkei Asia) Thai conglomerate Charoen Pokphand Group announced on Tuesday it is chang-ing the name of its Tesco stores in Thailand and Malaysia to Lotus s.
CP took over the stores from British retailer Tesco last year. With the change, the Tesco brand, which expanded into Southeast Asia in the 1990s, will disappear from the region.
The first revamped store in Bangkok opened for testing purposes on Monday. In Thailand, the stores had previously operated under the Tesco Lotus brand. The logo has been changed from a white background with red and green lettering to a green-hued design. The move is aimed at re-newing the company s image.
A banner year for M&A deals
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Despite the pandemic, there were many large merger and acquisition agreements
published : 25 Dec 2020 at 07:00
1 A woman pushes a shopping cart in front of a Tesco Lotus store in Bangkok. CP Group s acquisition of the hypermarket chain was one of the largest deals this year. (Photo by Wisit Tham-ngern)
Merger and acquisition (M&A) activity looked strong at the beginning of 2020 with numerous transactions, including the acquisition of the Ninth Towers office building and Unilever House office building projects (US$186 million and $50.4 million, respectively) by CPN Retail Growth Leasehold REIT.
In the first quarter of 2020, according to international consulting firm KPMG, the real estate, infrastructure and construction sectors contributed 83.5% of the $1.36 billion M&A transaction value.
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The impending Charoen Pokphand Group s Tesco buyout will be explained by the companies to the House Committee on Commerce and Intellectual Property on Wednesday.
Representatives of Tesco Plc and the CP Group will disclose details of the acquisition deal at the committee s invitation, said Sirikanya Tansakun, chairwoman of the committee.
Earlier, the committee invited Somsak Kiatchailak, secretary-general of the Office of Trade Competition Commission (OTCC), to testify about the matter.
The government s competition watchdog early last month approved the Group s US$10.6-billion acquisition of the British supermarket s Thai operations. The deal would see CP acquire 86.9% of Tesco s Thai operations and 100% of the UK retailer s Malaysian business, prospects that many say give the company an unfair hold on the retail sector in Thailand.