DFI Retail, Hutchison in talks over merging Hong Kong supermarket businesses

Shoppers are seen outside one of the biggest Parknshop Superstores, owned by tycoon Li Ka-shing, inside a shopping mall in Hong Kong — The talks have been underway for some time but no deal is imminent. (Source: Reuters/Bobby Yip)

By Kane Wu and Disha Mishra April 17, 2026

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CK Hutchison Holdings and Jardine Matheson Holdings, two of Hong Kong’s biggest conglomerates, are in talks to merge their supermarket divisions in the city, said two people with knowledge of the matter.

The talks between Hutchison and Jardine’s DFI Retail unit have been underway for some time but no deal is imminent, said the people, declining to be named because the discussions are confidential.

Hutchison has contacted a number of parties to discuss potential options for its ParknShop supermarket chain, one of the sources said.

The Financial Times first reported the talks on Friday.

Hutchison declined to comment, while Jardine referred a Reuters request for comment to DFI. A DFI spokesperson said the company does not comment on speculation or rumours.

Hutchison’s AS Watson group, which owns ParknShop, competes with DFI, which runs the Wellcome supermarket chain.

The combined group would have a market share of less than 50 per cent, according to the FT report.

Hutchison is exploring an initial public offering of AS Watson, which also owns chains including Superdrug and The Perfume Shop in Britain. The conglomerate is seeking a valuation for the unit of around US$30 billion for listings in Hong Kong and London as soon as the second quarter, two people with knowledge of the matter told Reuters in January.

ParknShop has more than 240 stores in Hong Kong and Macau, its website shows.

AS Watson recorded sales revenue of more than $26 billion last year, its website shows. ParknShop represents only a small part of that total, one of the people and a third person with knowledge of Hutchison’s plans said.

Wellcome employs about 7000 people and has a network of around 280 stores serving more than 13 million customers each month, its website says.

DFI’s food division, which includes Wellcome, reported $3 billion in sales in 2025.

Reporting by Kane Wu in Hong Kong and Disha Mishra in Bengaluru. Editing by Muralikumar Anantharaman and Mark Potter, of Reuters.
Further reading: DFI Retail Group’s ‘significant progress’ drives positive earnings.