Central Retail to acquire 30 MaxValu stores in Thailand
Central Food Retail will acquire Aeon (Thailand), gaining 30 MaxValu stores and more than 900,000 customers before converting the outlets to Tops
Central Retail Corporation Plc (CRC) is moving to acquire the business behind 30 MaxValu supermarkets in Thailand, with plans to convert all of the outlets to the Tops brand after the transaction is completed.
CRC chief executive officer Suthisarn Chirathivat reported to the Stock Exchange of Thailand (SET) that Central Food Retail Co Ltd (CFR), a wholly owned subsidiary of CRC through direct and indirect holdings, had signed an agreement to acquire all ordinary shares in Aeon (Thailand) Co Ltd.
CFR will acquire 100% of the company, which has registered capital of 890 million baht. The acquisition will be funded from the company’s internal cash flow.
The transaction covers the operation of 30 supermarkets under the MaxValu brand.
Deal expands Central Retail’s food business
CRC said the main objective of the investment was to expand its branch network in strategically important locations and strengthen its food business.
The acquisition is expected to provide several benefits:
- Customer expansion: CFR will immediately gain access to more than 900,000 additional customers.
- Production capacity: The deal includes ownership of potentially valuable land as well as a Ready-to-Eat Processing Center, which CRC said would enhance production capabilities and help differentiate its ready-to-eat food range.
MaxValu stores to become Tops
After the transaction is completed in accordance with the conditions precedent set out in the agreement, CFR plans to apply its retail expertise to develop the acquired business and improve operating efficiency.
All 30 MaxValu outlets will be converted to Tops stores and integrated into CFR’s ecosystem.
CRC said the integration was intended to strengthen the business and support steady growth in its operating performance.
The transaction was disclosed under Stock Exchange of Thailand requirements covering investments by a listed company’s subsidiary that result in another company becoming a subsidiary of the listed group.
