On March 9, 2020, CP Group, Thailand’s biggest agribusiness conglomerate, reached an agreement with British grocery chain Tesco to purchase its businesses in Thailand and Malaysia for USD 10.6 billion. Following this agreement, CP will own 86.9% in Tesco Stores Thailand Ltd and 100% in Tesco Stores Malaysia Sdn Bhd.
This deal’s value is among the highest in Asia this year, and CP Group has turned to JPMorgan Chase, UBS, and Siam Commercial Bank to underwrite the deal. With this result, CP Group emerged as the winner in the auction process against TCC Group and Central Group.
However, the CP-Tesco deal still needs to gain approval from the Office of Trade Competition Commission (OTCC). It is still to be decided whether the acquisition would be considered a monopoly, given that CP already owns 7-Eleven convenience stores and the Makro cash-and-carry business. Furthermore, per Tesco’s announcement of the sale, this deal is conditional on the approval of its shareholders and regulatory agencies and is expected to be completed in the second half of 2020.
(Sources: Bangkok Post, The Thaiger)