CP Group plans new acquisition
Thai company CP Group is to take a controlling interest in rival Siam Makro.
The company’s subsidiary CP All, which operates convenience chain 7-Eleven in Thailand, will reportedly acquire 60 per cent of Siam Makro, which operates Makro cash-and-carry stores in the country.
CP Group originally entered the cash-and-carry business when it took a 51 per cent stake in Siam Makro in 1988. However, due to the financial crisis in 1997, it cut its shareholding in the company to 13.44 per cent, which it later sold.
“CP never planned to end its cash-and-carry business. What happened was an accident,” said the source.
CP Group is attracted to reinvest in cash-and-carry business due to its good cash flow and loose competition. Acquiring Siam Makro is also part of CP Group’s strategy to strengthen its retail portfolio, adds the source.
Siam Makro has 57 cash-and-carry stores across Thailand, including 11 in Bangkok, while CP All operates more than 6800 7-Eleven stores in the country.