What To Know
- Central Retail Corporation Plc (CRC) is making a significant move to expand its supermarket empire in Thailand, agreeing to acquire the company operating 30 MaxValu stores in a deal that will add more than 900,000 customers to its food retail business and ultimately see the familiar outlets transformed into Tops supermarkets.
- CRC chief executive officer Suthisarn Chirathivat informed the Stock Exchange of Thailand (SET) that Central Food Retail Co Ltd (CFR), a wholly owned subsidiary of CRC through direct and indirect holdings, has signed an agreement to acquire all ordinary shares in AEON (Thailand) Co Ltd.
Central Retail Corporation Plc (CRC) is making a significant move to expand its supermarket empire in Thailand, agreeing to acquire the company operating 30 MaxValu stores in a deal that will add more than 900,000 customers to its food retail business and ultimately see the familiar outlets transformed into Tops supermarkets.
Image Credit: Bangkok Business News
CRC chief executive officer Suthisarn Chirathivat informed the Stock Exchange of Thailand (SET) that Central Food Retail Co Ltd (CFR), a wholly owned subsidiary of CRC through direct and indirect holdings, has signed an agreement to acquire all ordinary shares in AEON (Thailand) Co Ltd. The transaction, this Bangkok Business News report notes, will hand CFR full ownership of the company behind MaxValu’s 30 supermarkets in Thailand.
900,000 Customers Added to Central’s Reach
AEON (Thailand) has registered capital of 890 million baht, while CRC plans to finance the acquisition through internal cash flow. The transaction remains subject to the conditions precedent specified in the agreement before it can be completed.
For Central Retail, however, the deal represents much more than the addition of another 30 locations. CRC said the acquisition fits its strategy of strengthening its food business by expanding its branch network in strategically important areas.
Crucially, CFR will gain immediate access to a customer base exceeding 900,000 people, potentially giving Tops a substantially broader reach in Thailand’s competitive supermarket sector.
MaxValu Stores Set for Tops Transformation
Once the transaction is completed, Central Food Retail intends to convert all 30 MaxValu supermarkets into Tops stores and bring them into its existing retail ecosystem.
CRC expects to deploy its retail experience and operating capabilities across the acquired business, improving efficiency while supporting more consistent growth in operating performance.
The acquisition also brings assets extending beyond the supermarket locations themselves. These include land and a ready-to-eat food processing center that CRC believes can increase production capacity and help the group develop a more distinctive range of prepared food products.
Bigger Battle for Thailand’s Grocery Shoppers
The takeover signals Central Retail’s determination to strengthen Tops at a time when convenience, prepared foods and easily accessible supermarket locations are increasingly important battlegrounds for Thailand’s major retailers.
While completion still depends on the conditions contained in the acquisition agreement, the combination of 30 additional stores, valuable operating assets and more than 900,000 customers could give Central Food Retail considerably greater scale. Converting MaxValu locations into Tops stores could also reshape competition in several strategic locations and deepen Central Retail’s presence in consumers’ everyday grocery spending.
For more on Central Retail Corporation Plc (CRC), visit:
https://www.centralretail.com/en/home
