Competition watchdog approves CP-Tesco deal
The Office of Trade Competition Commission (OTCC) on Friday gave the green light to Charoen Pokphand (CP) Group’s deal to buy Tesco Stores (Thailand).
A majority of commissioners agreed the merger would not lead to a monopoly, but acknowledged it will increase CP’s dominance in the consumer goods retail segment.
They also said the merger could significantly reduce market competition but would not cause severe damage to the economy. They added it would not affect the benefits of consumers.
CP Group already operates 7-Eleven stores and the Siam Makro chain.
The commission set conditions and remedial measures for the purchaser to mitigate possible market impacts post-merger.
One of the conditions is that CP Group is banned from doing merger deals with other players in the consumer goods retail sector for three years. This rule does not apply to the e-commerce sector.
CP acquired Tesco Thailand and Tesco Malaysia in a deal worth US$10.6 billion early this year.
