Aeon buying Carrefour's hypermarket business in Malaysia
Japanese retailer Aeon Co is expanding in Asia through the acquisition of France-based Carrefour's Malaysian business for slightly more than ¥20 billion (Bt7.7 billion).
The Nikkei reported yesterday that the deal, which is expected to be completed by next week, will make Aeon, Japan’s No 1 supermarket operator, one of the biggest retailers in Malaysia. Carrefour operates 26 hypermarkets in that country.
Carrefour, the world’s No 2 retailer, has been struggling to come up with cash to cut debt and fund the revival of its struggling European hypermarkets. In 2010, Carrefour sold its business in Thailand to Big C Supercenter for Bt35.5 billion. The company said in August that it would shut its two stores in Singapore by the end of this year.
According to the company’s website, in the fiscal year ended February 2012, outside of Japan, Aeon Group operates 2,315 stores.
Aeon said: “In the year, the group laid a new foundation for Asian growth by starting plans for opening stores in Vietnam, Cambodia and other new geographic areas, while also pushing forward to set up headquarters functions for China and Asean. Going forward, the group will explore growth in new geographic and business areas using its China and Asean headquarters to accelerate an integrated group approach to Asian business development.”
In Asean, the group will begin business operations to prepare for the opening of its first stores in Vietnam and Cambodia in 2014. Preparations will also be made for developing business in Indonesia.
The group has placed emphasis on the China and Asean markets in accordance with one of
its group-wide strategies, “shift to Asian markets”, specified in the three-year medium-term management plan starting from fiscal 2011. In September, however, the group felt the pinch from recent demonstrations in China against Japanese business. One of its stores was damaged.
For now, all stores have resumed normal operations except for Jusco Hungdao.
Aeon Group
The Japanese retailer operated 2,315 stores outside Japan as of end-February 2012, aside from 12,904 in Japan.
South Korea 1,581 stores
Philippines 320
Thailand 188
China 76
Malaysia 74
Hong Kong 57
Taiwan 11
India 5
Others 3
