Charoen Pokphand Foods Public Company Limited (CPF) stated that the company is considering and reviewing the Office of Trade Competition Commission’s conditions regarding the acquisition of Tesco Thailand and Tesco Stores (Malaysia).
CPF has made a statement in relation to the investment in Tesco Stores (Thailand) Limited (Tesco Thailand) and Tesco Stores (Malaysia) Sdn. The investment is made indirectly through special purpose vehicles being C.P. Retail Holding Company Limited which wholly owns the share capital of C.P. Retail Development Company Limited.
The company announced that on November 9, 2020, the C.P. Retail Development received a letter from the Office of Trade Competition Commission which notified its approval with prescribed conditions in respect of the purchase by C.P. Retail Development of the shares in Tesco Thailand.
The conditions include a restriction for the company to merge with another business with the same category such as retail and wholesale businesses for the next three years. However, the restriction does not include E-Commerce business.
Moreover, the Office of Trade Competition Commission also indicated in the conditions for CPALL Public Company Limited (CPALL), a subsidiary of CPF, to increase the ratio of agricultural and farm products as well as OTOP products in the 7-Eleven stores by at least 10% per annum for the next five years.
In this regard, C.P. Retail Development is in the process of considering and reviewing such conditions.