Thai legislators approve Charoen Pokphand Group (CP Group)'s acquisition of local retail business of Tesco with conditions.
Ban on other modern trade merger for three years
The Office of the Trade Competition Commission (OTCC) said that CP will not be allowed to enter another merger, except for ecommerce, for three years. It will also have to buy more products from local small and medium enterprises. The retailer must honour existing contracts with suppliers for the next two years. The agency shared in a statement that "the deal may significantly lower competition but won't create major damage to the economy or consumers' benefits".
More about CP Group
CP Group operates the 7-Eleven convenience chain with almost 12,000 convenience stores and 134 Siam Makro wholesale stores in Thailand. The retailer will control 2,000 Tesco Lotus hypermarkets and small stores across the country after the merger. There are also 60 stores in Malaysia that will come under the group.
Subscribers can read more about the implications of the merger in our report here.