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Competition commission to consider CP's Tesco acquisition today


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Competition commission to consider CP's Tesco acquisition today

By The Nation

 

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The Trade Competition Commission (TCC) will meet today to decide whether Charoen Pokphand (CP)’s acquisition of Tesco’s Thailand business could lead to a monopoly or unfair market dominance. CP already operates the 7-Eleven franchise in Thailand.

 

CP, through its subsidiary CP Retail Development Co, is buying an 86.9 per cent stake in Tesco Stores Thailand and 100 per cent in Tesco Stores Malaysia.

 

TCC chairman Sakon Waranyuwattana said the deadline for the 90-day consideration is the end of October, but it could be extended by up to 15 days if any commissioner wanted to present additional details.

 

“Regardless of the outcome of the consideration, there will be people who agree and disagree. But the committee will be impartial in its judgement, not favouring anyone,” Sakon said.

 

Somchai Pornratanacharoen, president of the Thai Wholesale and Retailing Association, said the TCC had held public hearings where concerns were raised that the CP-Tesco deal would put mom-and-pop stores out of business.

 

"Personally, I believe the TCC will allow mergers and acquisitions since they cannot stop the operations of large-scale national businesses.

 

But we have to look at how this merger will affect small shops and how we can all live together. The country's economy is deteriorating, purchasing power is falling and shoppers are moving online. Regardless of the TCC ruling, society must be given good reasons for this merger, "said Somchai.

 

CP informed the Stock Exchange of Thailand in March that it had acquired shares in Tesco Stores (Thailand) and Tesco Stores (Malaysia).

 

The share purchases, which allow CP to acquire assets worth Bt338.445 billion, must be approved by the TCC and the Malaysia’s Domestic Trade and Consumers Affairs Ministry, respectively.

 

Tesco’s business in Thailand consists of 214 hypermarkets, 179 Tesco-Lotus stores, 1,574 Tesco Express branches, and leasing space in 191 shopping centres.

 

Tesco’s Malaysia business consists of 46 hypermarkets, 13 supermarkets, 9 small shops, and space leasing in 56 shopping centres.

 

https://www.nationthailand.com/business/30396943

 

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-- © Copyright The Nation Thailand 2020-10-29
 
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7 hours ago, webfact said:

The Trade Competition Commission (TCC) will meet today to decide whether Charoen Pokphand (CP)’s acquisition of Tesco’s Thailand business could lead to a monopoly or unfair market dominance. CP already operates the 7-Eleven franchise in Thailand.

Why bother, we know the answer already.

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8 hours ago, webfact said:

But the committee will be impartial in its judgement, not favouring anyone,” Sakon said.

and that made my day, was in need of a good laugh 555

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it's all under the same control / relationship that's why Prayut don't want to quit

https://www.scmp.com/news/asia/southeast-asia/article/3007402/chearavanonts-thailands-richest-family-are-getting-richer

The Chearavanonts, Thailand’s richest family, are getting richer helping China

Their Charoen Pokphand Group is at the centre of the Eastern Economic Corridor, a project that has drawn the attention of Chinese firms like Huawei and Alibaba

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