Competition commission to consider CP's Tesco acquisition today

[webfact]

Competition commission to consider CP's Tesco acquisition today

By The Nation

 

 

The Trade Competition Commission (TCC) will meet today to decide whether Charoen Pokphand (CP)’s acquisition of Tesco’s Thailand business could lead to a monopoly or unfair market dominance. CP already operates the 7-Eleven franchise in Thailand.

 

CP, through its subsidiary CP Retail Development Co, is buying an 86.9 per cent stake in Tesco Stores Thailand and 100 per cent in Tesco Stores Malaysia.

 

TCC chairman Sakon Waranyuwattana said the deadline for the 90-day consideration is the end of October, but it could be extended by up to 15 days if any commissioner wanted to present additional details.

 

“Regardless of the outcome of the consideration, there will be people who agree and disagree. But the committee will be impartial in its judgement, not favouring anyone,” Sakon said.

 

Somchai Pornratanacharoen, president of the Thai Wholesale and Retailing Association, said the TCC had held public hearings where concerns were raised that the CP-Tesco deal would put mom-and-pop stores out of business.

 

"Personally, I believe the TCC will allow mergers and acquisitions since they cannot stop the operations of large-scale national businesses.

 

But we have to look at how this merger will affect small shops and how we can all live together. The country's economy is deteriorating, purchasing power is falling and shoppers are moving online. Regardless of the TCC ruling, society must be given good reasons for this merger, "said Somchai.

 

CP informed the Stock Exchange of Thailand in March that it had acquired shares in Tesco Stores (Thailand) and Tesco Stores (Malaysia).

 

The share purchases, which allow CP to acquire assets worth Bt338.445 billion, must be approved by the TCC and the Malaysia’s Domestic Trade and Consumers Affairs Ministry, respectively.

 

Tesco’s business in Thailand consists of 214 hypermarkets, 179 Tesco-Lotus stores, 1,574 Tesco Express branches, and leasing space in 191 shopping centres.

 

Tesco’s Malaysia business consists of 46 hypermarkets, 13 supermarkets, 9 small shops, and space leasing in 56 shopping centres.

 

https://www.nationthailand.com/business/30396943

 

-- © Copyright The Nation Thailand 2020-10-29

 

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[pegman]

42 minutes ago, webfact said:

Competition commission to consider CP's Tesco acquisition today

By The Nation

 

 

The Trade Competition Commission (TCC) will meet today to decide whether Charoen Pokphand (CP)’s acquisition of Tesco’s Thailand business could lead to a monopoly or unfair market dominance. CP already operates the 7-Eleven franchise in Thailand.

 

CP, through its subsidiary CP Retail Development Co, is buying an 86.9 per cent stake in Tesco Stores Thailand and 100 per cent in Tesco Stores Malaysia.

 

TCC chairman Sakon Waranyuwattana said the deadline for the 90-day consideration is the end of October, but it could be extended by up to 15 days if any commissioner wanted to present additional details.

 

“Regardless of the outcome of the consideration, there will be people who agree and disagree. But the committee will be impartial in its judgement, not favouring anyone,” Sakon said.

 

Somchai Pornratanacharoen, president of the Thai Wholesale and Retailing Association, said the TCC had held public hearings where concerns were raised that the CP-Tesco deal would put mom-and-pop stores out of business.

 

"Personally, I believe the TCC will allow mergers and acquisitions since they cannot stop the operations of large-scale national businesses.

 

But we have to look at how this merger will affect small shops and how we can all live together. The country's economy is deteriorating, purchasing power is falling and shoppers are moving online. Regardless of the TCC ruling, society must be given good reasons for this merger, "said Somchai.

 

CP informed the Stock Exchange of Thailand in March that it had acquired shares in Tesco Stores (Thailand) and Tesco Stores (Malaysia).

 

The share purchases, which allow CP to acquire assets worth Bt338.445 billion, must be approved by the TCC and the Malaysia’s Domestic Trade and Consumers Affairs Ministry, respectively.

 

Tesco’s business in Thailand consists of 214 hypermarkets, 179 Tesco-Lotus stores, 1,574 Tesco Express branches, and leasing space in 191 shopping centres.

 

Tesco’s Malaysia business consists of 46 hypermarkets, 13 supermarkets, 9 small shops, and space leasing in 56 shopping centres.

 

https://www.nationthailand.com/business/30396943

 

-- © Copyright The Nation Thailand 2020-10-29

 

- Whatever you're going through, the Samaritans are here for you

- Follow Thaivisa on LINE for breaking COVID-19 updates

Any concerns the TTC has about "monopoly or unfair market dominance" can surely be overcome with an abundance of fat brown envelopes.

[colinneil]

2 hours ago, webfact said:

The Trade Competition Commission (TCC) will meet today 

Why bother? CP can do what ever they want, nobody here can/ will stop therm.

[worgeordie]

CP is just buying back what it used to own before,and had to

sell off in the financial crisis of 1997,and as it seems they

bought and paid for it, bit late having an inquiry .

regards Worgeordie

[ChrisY1]

Now where is that rubber stamp??

[ThailandRyan]

3 hours ago, pegman said:

Any concerns the TTC has about "monopoly or unfair market dominance" can surely be overcome with an abundance of fat brown envelopes.

Of course it can, but what is a monopoly in todays world view.  More money gets you anything you want and keeps destroying the mom and pop shops that feed the locals.  Not sure if the Globalists feel they are in control until they own it all.  Once upon a time there were laws that broke up large monopolies in the name of fair competition.  However, if you do not have money you really can not make money, so the top 1% get richer and the poor get poorer, especially here in Thailand.

[mtls2005]

4 hours ago, webfact said:

"Personally, I believe the TCC will allow mergers and acquisitions since they cannot stop the operations of large-scale national businesses.

 

TCC sounds like some bureacracratic institution made to provide hundreds of jobs, and one rubber stamp and pad. Stamp says "APPROVED".

 

 

 

 

 

[hotchilli]

7 hours ago, webfact said:

The Trade Competition Commission (TCC) will meet today to decide whether Charoen Pokphand (CP)’s acquisition of Tesco’s Thailand business could lead to a monopoly or unfair market dominance. CP already operates the 7-Eleven franchise in Thailand.

Why bother, we know the answer already.

[Redline]

Like there is any doubt about the outcome~the whole system is monopoly.  Look at the outcome of airport concessions....

[Mavideol]

8 hours ago, webfact said:

But the committee will be impartial in its judgement, not favouring anyone,” Sakon said.

and that made my day, was in need of a good laugh 555

[Mavideol]

it's all under the same control / relationship that's why Prayut don't want to quit

https://www.scmp.com/news/asia/southeast-asia/article/3007402/chearavanonts-thailands-richest-family-are-getting-richer

The Chearavanonts, Thailand’s richest family, are getting richer helping China

Their Charoen Pokphand Group is at the centre of the Eastern Economic Corridor, a project that has drawn the attention of Chinese firms like Huawei and Alibaba

[Saddic]

bye bye Tesco... 

 

Will be missed, just like Carrefour...

[overt2016]

Surely CP has been running Tesco for months. 

[rickudon]

Jobs on the TCC must cost a fortune to get. But the benefits are even bigger .......