Charoen Pokphand’s Indonesian plan shelved
Thai conglomerate Charoen Pokphand’s plan to acquire Indonesia’s 7-Eleven convenience stores has been shelved.
“Non-agreement of the parties concerned” has been cited as the reason for the cancellation, according to a stock exchange filing by Modern International, the parent company of Modern Sevel Indonesia, which runs the stores.
When Charoen Pokphand Indonesia announced the US$75 million plan in April, it was seen as a lifeline for Modern Sevel, which has been recording losses in recent years in the face of high market competition. It had also been hit by Jakarta’s 2015 decision to ban alcohol sales at small retail stores.
The purchase had been expected to be completed this month. Modern Sevel had 175 7-Eleven outlets as of September, mostly in Jakarta. In Thailand, Charoen affiliate Charoen Pokphand Group already runs the 7-Eleven trademark with more than 9500 outlets.