CP's acquisition of Tesco Lotus compromises consumer interests, says ex-deputy PM
The takeover of Tesco Lotus by conglomerate CP Group will have a negative effect on consumers, former deputy prime minister Korbsak Sabhavasu said.
After the Office of Trade Competition Commission voted to allow CP Retail Development Co Ltd and Tesco Stores (Thailand) to merge, Korbsak pointed out that there would be less competition in the market.
He expressed disappointment that the merger was allowed on November 2 after about three months of deliberations.
He said that the consumers would lose benefits from CP’s decision to buy Tesco from Ek-Chai Distribution System Co Ltd, which was the major shareholder. About
40 per cent of CP Retail Development shares belong to CP All, 40 per cent is held by Charoen Pokphand Holding Co Ltd, and 20 per cent by CP Merchandising Co Ltd.
The acquisition along with that of Tesco Stores (Malaysia) Sdn Bhd were processed simultaneously and they were worth Bt338 billion in total.