The $10.6bn takeover by local family conglomerate Charoen Pokphand has been approved subject to a number of other conditions.
Tesco has nearly 2000 supermarkets in Thailand and 74 in Malaysia, the takeover will makes Charoen Pokphand (CP) the country’s most powerful retailer, with the brand already operating Thailand’s 7-Eleven convenience store chain and the Siam Makro cash and carry brand.
The company commented that buying Tesco’s supermarkets would give it a hold on all retail sectors and concerns were raised that this would create potential market dominance. However, Thailand’s Office of Trade Competition Commission (OTCC) commented: “The majority of commissioners agreed that the merger of those businesses (could create) market dominance… but it’s not a monopoly.”
The regulator commented that CP Group would not be allowed to pursue other retail merger deals during the next three year period.
This transaction is one of Asia’s biggest mergers and acquisitions deals of the year.
