snoop1130 Posted January 8, 2020 Share Posted January 8, 2020 PTT retail unit set to join Thai corporate giants vying for Tesco's Asia business - sources By Kane Wu, Anshuman Daga HONG KONG/SINGAPORE (Reuters) - The retail unit of Thailand’s biggest energy company PTT plans to bid for Tesco Plc’s Asia businesses, competing with other Thai corporate heavyweights for the operations worth up to $9 billion, people familiar with the situation said. PTTOR, the unit which runs PTT’s gas stations and related retail business, is set to join domestic retailer Central Group and conglomerate Charoen Pokphand (CP) Group in first-round bids due by Jan. 15, they said. Tesco last month said it had begun a review of its Asian operations after receiving approaches for the businesses.. It has 1,967 stores in Thailand and 74 in Malaysia. Bernstein analysts have valued the Asian business at 6.5 billion pounds to 7.2 billion pounds ($8.3 billion-$9.2 billion), and sources said “people were comfortable with” that range. The people declined to be identified as the information is confidential. Representatives for PTT, Central Group and CP Group did not respond to requests for comment. Tesco declined comment. PTT retail unit’s interest comes amid a rare warning from Thailand’s Office of Trade Competition Commission that businesses wishing to bid for the Thai operations should not violate anti-monopoly laws and that the commission is monitoring the deal closely. “There was no precedent that the anti-trust regulator would voice concern before a transaction takes place,” said one person familiar with the situation. A $9 billion price tag would rank the deal as the second-largest acquisition ever by a Thai group, just behind CP Group’s $9.4 billion purchase of a minority stake in China’s Ping An Insurance, according to Refinitiv data. At that valuation, the Thai portion of the business would have an enterprise value of 11 times EBITDA, one person said. By comparison, the sale of a majority stake in hypermarket operator Big C Supercenter, Tesco’s main Thai competitor, by France’s Casino to Thailand’s TCC Group for 3.1 billion euros, yielded a multiple of 15-16 times, analysts said. Two sources said there is likely to be interest from international bidders, including Japanese firms, but the Thais were frontrunners to buy the assets. One of the biggest players in Thailand’s retail market, Tesco has some 400 supermarkets and hypermarkets under its Tesco Lotus brand and 1,500 Tesco Express convenience stores. CP All, a unit of CP Group, has more than 11,600 7-Eleven stores in the country and also owns cash-and-carry wholesaler Siam Makro Pcl. Central Group, controlled by the Chirathivat family, runs 200 supermarkets in Thailand. The group does not own any hypermarkets in the country. TCC has expressed interest in Tesco’s assets but is not expected to be a serious contender due to overlapping businesses, the people said. TCC did not respond to a request for comment. -- © Copyright Reuters 2020-01-08 Follow Thaivisa on LINE for breaking Thailand news and visa info Link to comment Share on other sites More sharing options...
ParkerN Posted January 8, 2020 Share Posted January 8, 2020 Right now is the time when a good few of the senior management of TL will be starting to feel some anxiety. Especially the very few foreign appointees. N'est ce pas Ann? The thing about ignoring red lights is that you never quite know which ones can be ignored and which ones shouldn't be. Many ways to skin a cat when you're in the cat-skinning game.. Link to comment Share on other sites More sharing options...
worgeordie Posted January 8, 2020 Share Posted January 8, 2020 I expect CP would like to buy it back again, regards worgeordie Link to comment Share on other sites More sharing options...
ParkerN Posted January 8, 2020 Share Posted January 8, 2020 1 minute ago, worgeordie said: I expect CP would like to buy it back again, regards worgeordie I expect so, they quite like a house-cleaning - or so I understand. Link to comment Share on other sites More sharing options...
gaikhao Posted January 8, 2020 Share Posted January 8, 2020 CP purchase would create a near monopoly. Link to comment Share on other sites More sharing options...
DrTuner Posted January 8, 2020 Share Posted January 8, 2020 37 minutes ago, gaikhao said: CP purchase would create a near monopoly. Which means only one thing: higher prices. Let 'em eat cake. Link to comment Share on other sites More sharing options...
Don Mega Posted January 8, 2020 Share Posted January 8, 2020 9 minutes ago, DrTuner said: Which means only one thing: higher prices. Let 'em eat cake. or the anti-monolopy peeps suddenly become very rich and quiet. Link to comment Share on other sites More sharing options...
ParkerN Posted January 8, 2020 Share Posted January 8, 2020 When CP got the franchise, there were certain undertaking which underwrote his soon-to-be-generated fabulous wealth. Meh, things come, things go, tides ebb and flow. But under it all, the initial undertakings remain, which cannot be broken for fear of there being no more. CP will flourish, perhaps they will get TL back, perhaps they won't. Personally I'm not really interested, which means I probably won't have a stroke and die like the franchise holder. Poverty has it's upside and time is running a little on the short side for the troughers to stop now. It pays to have a Chinese provenance somewhere in the wardrobe. Link to comment Share on other sites More sharing options...
Fred white Posted January 8, 2020 Share Posted January 8, 2020 Who ever buys it I hope they sell beef products and can keep stuff on the shelves Link to comment Share on other sites More sharing options...
sammieuk1 Posted January 8, 2020 Share Posted January 8, 2020 Sell it to ASDA and get something worth buying on the shelves with some competition to stir up this pricing cartel ???? Link to comment Share on other sites More sharing options...
scorecard Posted January 8, 2020 Share Posted January 8, 2020 3 hours ago, gaikhao said: CP purchase would create a near monopoly. Which should not be allowed by law! Link to comment Share on other sites More sharing options...
Airbagwill Posted January 8, 2020 Share Posted January 8, 2020 8 hours ago, snoop1130 said: Thai operations should not violate anti-monopoly laws and that the commission is monitoring the deal closely. The loss of Tescos will undoubtedly further reduce the variety of businesses in this market. We have already lost Carrefour. No matter what the authorities say it is bound to be yet another step towards a CARTEL or monopoly. Link to comment Share on other sites More sharing options...
Airbagwill Posted January 8, 2020 Share Posted January 8, 2020 5 hours ago, sammieuk1 said: Sell it to ASDA and get something worth buying on the shelves with some competition to stir up this pricing cartel ???? ASDA as in Wal-Mart? Link to comment Share on other sites More sharing options...
mickey rat Posted January 9, 2020 Share Posted January 9, 2020 14 hours ago, gaikhao said: CP purchase would create a near monopoly. Welcome to CP Chicken land. Link to comment Share on other sites More sharing options...
Griff4114 Posted January 9, 2020 Share Posted January 9, 2020 What happened to the Morrisons and Big C link up?????? Link to comment Share on other sites More sharing options...
hotchilli Posted January 9, 2020 Share Posted January 9, 2020 10 hours ago, scorecard said: Which should not be allowed by law! When did the law ever apply in Thailand, especially where big families & money is involved? Link to comment Share on other sites More sharing options...
madmitch Posted January 9, 2020 Share Posted January 9, 2020 15 hours ago, snoop1130 said: PTT retail unit’s interest comes amid a rare warning from Thailand’s Office of Trade Competition Commission that businesses wishing to bid for the Thai operations should not violate anti-monopoly laws and that the commission is monitoring the deal closely. It comes as a surprise to learn that anti-monopoly laws exist in Thailand. Though I guess like other laws here they can all be circumnavigated at the drop of an envelope. Link to comment Share on other sites More sharing options...
scorecard Posted January 9, 2020 Share Posted January 9, 2020 24 minutes ago, madmitch said: It comes as a surprise to learn that anti-monopoly laws exist in Thailand. Though I guess like other laws here they can all be circumnavigated at the drop of an envelope. Yes there are anti-monopoly laws in Thailand and questions on this point when CP were allowed (by the appropriate agencies) to buy Makro were never answered. Link to comment Share on other sites More sharing options...
Henryford Posted January 9, 2020 Share Posted January 9, 2020 Tesco would not be a great loss. They are far below the standards of Big C Extra. Link to comment Share on other sites More sharing options...
Burma Bill Posted January 9, 2020 Share Posted January 9, 2020 16 hours ago, gaikhao said: CP purchase would create a near monopoly. Yes indeed and imagine how infuriating to hear that musical broadcast - ding dong "welcome" when entering every Tesco outlet throughout Thailand, like 7-11! Link to comment Share on other sites More sharing options...
George Aylesham Posted January 9, 2020 Share Posted January 9, 2020 8 hours ago, Airbagwill said: ASDA as in Wal-Mart? Oh no, not ASDA. Walmart's takeover have been a horribly traumatic experience for employees. Link to comment Share on other sites More sharing options...
Burma Bill Posted January 9, 2020 Share Posted January 9, 2020 With PTT involvement, maybe new petrol stations on supermarket forecourts, like the UK. You will be able to fill up your vehicle with fuel and do shopping in a supermarket at one visit. Link to comment Share on other sites More sharing options...
Bangkok Barry Posted January 9, 2020 Share Posted January 9, 2020 1 hour ago, Henryford said: Tesco would not be a great loss. They are far below the standards of Big C Extra. The Tesco supermarket nearest me sometimes has not enough room to park and always has plenty of shoppers. Since Tesco opened, the Big C 200 metres away rarely has more than a couple of cars parked, and they might belong to staff. All the side shops there have closed and they have just one till manned. So it seems that the majority do not share your view. Link to comment Share on other sites More sharing options...
grobec Posted January 9, 2020 Share Posted January 9, 2020 Mmmm strong move to see lotus Express shops in all PTT stations? An obvious move to vertical profits. Link to comment Share on other sites More sharing options...
jirathama Posted January 9, 2020 Share Posted January 9, 2020 On 12/24/2019 at 12:25 PM, gamesgplayemail said: Link to comment Share on other sites More sharing options...
Fred white Posted January 9, 2020 Share Posted January 9, 2020 4 hours ago, Burma Bill said: With PTT involvement, maybe new petrol stations on supermarket forecourts, like the UK. You will be able to fill up your vehicle with fuel and do shopping in a supermarket at one visit. They have the same thing in the US Link to comment Share on other sites More sharing options...
Grumpy John Posted January 9, 2020 Share Posted January 9, 2020 4 hours ago, grobec said: Mmmm strong move to see lotus Express shops in all PTT stations? An obvious move to vertical profits. But will they be competing with 7/11 or will the 7/11s be compelled to leave? Link to comment Share on other sites More sharing options...
ParkerN Posted January 9, 2020 Share Posted January 9, 2020 23 hours ago, ParkerN said: Right now is the time when a good few of the senior management of TL will be starting to feel some anxiety. Especially the very few foreign appointees. N'est ce pas Ann? The thing about ignoring red lights is that you never quite know which ones can be ignored and which ones shouldn't be. Many ways to skin a cat when you're in the cat-skinning game.. Seems like I managed to confuse a few of my compatriots. That's a pity... Link to comment Share on other sites More sharing options...
overt2016 Posted January 9, 2020 Share Posted January 9, 2020 My local Tesco is a disgrace. Wrong price stickers or non existing stickers. I once took the store manager for a tour around the store pointing out the lack of clear ticketing. Result "sorry sorry" and no change. <deleted> off and get a competent company. Link to comment Share on other sites More sharing options...
superal Posted January 9, 2020 Share Posted January 9, 2020 Surin area , Tesco Lotus use to stock some UK items e.g. Bisto gravy granules , English breakfast tea bags etc but are no longer stocked and are not being reordered by Tesco from the UK as their future may be short lived in Thailand . OK if you are in the cities and can get your favourites but in smaller towns and having taken for granted that you can buy for example a decent cuppa , only to end up with Hobsons choice of Lyptons tea bags , I will not bother . Off to Pattaya for a stock up I suppose . Link to comment Share on other sites More sharing options...
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