Robinsons has announced that it will acquire Rustan's, with the increased scale of the combined business aimed at enabling it to build a leading food retail business in the Philippines.
Leveraging on each other’s strengths
The merger of Dairy Farm International Holdings Limited (Dairy Farm) and Robinsons Retail Holdings, Inc. (RRHI) will create a new platform for growth in the Philippines. Under the deal, valued at US$520m, Dairy Farm will exchange its ownership of Rustan Supercenters Inc. (RSCI) in return for 18.25% of shares in RRHI.
By combining the strengths of both groups, the new partnership benefits from great local knowledge as well as international presence and experience. Dairy Farm will maintain its footprint in the Philippines and customers will benefit from the improved scale of the larger group. The combined group - of RRHI and Rustan’s Supercenters - will be one of the top three retailers in the Philippines with over 1,700 stores.
More about Dairy Farm and Robinsons
Dairy Farm is a leading pan-Asian retailer. The Group operates many well-known brands across different formats – supermarkets, hypermarkets, convenience stores, health and beauty stores, home furnishings and restaurants. In 2017, the Group and its associates and joint ventures operated over 7,100 outlets, employed some 200,000 people and had total annual sales exceeding US$21bn. In the Philippines, RSCI operates food retail brands Marketplace by Rustan’s, Rustan’s Supermarket, Shopwise Hypermarket, Shopwise Express and Wellcome.
RRHI’s main formats are supermarkets, department stores, do-it-yourself stores, drugstores, convenience stores and apparel stores, and it also holds a minority interest in Robinsons Bank. RRHI had sales in 2017 of PHP115bn (approximately US$2.3bn) and operated 1,718 retail stores, including 154 supermarkets.
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