9th Mar 2020 06:48
(Alliance News) - Tesco PLC is finalising plans to sell its Thai and Malaysian operations in a deal that is expected to be worth around USD10 billion, the Financial Times reported on Sunday.
According to the newspaper, three Sino-Thai family conglomerates - Charoen Pokphand, Central Group and TCC Group - are in the running to buy the UK supermarket chain's south-east Asian Lotus business.
However, the FT noted that the outcome of the bidding war remains "unclear". Central Group has made an offer in excess of USD9 billion, the FT reported, citing people "briefed on the matter". The newspaper also reported that Charoen Pokphand has made a proposal above USD10 billion.
TCC's offer could not be immediately determined, according to FT, but Bloomberg reported that it recently raised a USD10 billion two-year loan to finance its bid.Â
Charoen Pokphand already owns Thailand's 7-Eleven convenience stores and the Siam Makro cash-and-carry chain. By adding Tesco's supermarket outlets, it would have a full suite of retail offering, increasing the market power of what is already one of Asia's largest conglomerates.
The other two rival groups also have large retail footprints, according to the newspaper, and Thailand's antitrust watchdog has given notice it will scrutinise any bid carefully.Â
https://www.ft.com/content/ab8e0ba4-60fb-11ea-b3f3-fe4680ea68b5
By Evelina Grecenko; [email protected]
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