China’s Wumart closes $374m deal with Thailand’s CP Group
China’s retail chain Wumart Stores Inc will acquire a bulk of CP Group’s stores in mainland China and take a stake in one of the Thai group’s companies in an all-stock deal worth $374 million, helping Wumart to grow its footprint in northern China, Reuters reported on October 15.
Wumart, an operator of supermarkets, has agreed to buy a majority of the CP Lotus retail stores in China for $302 million, the companies said in a joint statement. Wumart will also gain a 10 per cent stake in CP Lotus, which is listed in Hong Kong and controlled by CP Group, the conglomerate run by Thai billionaire Dhanin Chearavanont.
CP Lotus, which has 57 retail stores in China, will part with 36 of its stores in Beijing, Shanghai and various provinces. The company made a net loss of $7.7 million in the six months ended June. It will own a 13.8 per cent stake in Wumart at the close of the deal. Wumart has a market capitalisation of $2.4 billion, while CP Lotus has a market value of $373 million.
CP Group has interests spanning poultry and animal feed, supermarkets and auto making, and has a long history in China as the first multinational to invest in the country’s agri-business in 1979. It was later tasked with helping to modernise China’s farm sector.
China's retail chain Wumart Stores Inc will acquire a bulk of CP Group's stores in mainland China and take a stake in one of the Thai group's companies in an all-stock deal worth $374 million, helping Wumart to grow its footprint in northern China, Reuters reported on October 15. Wumart, an operator of supermarkets, has agreed to buy a majority of the CP Lotus retail stores in China for $302 million, the companies said in a joint statement. Wumart will also gain a 10 per cent stake in CP Lotus, which is listed in Hong Kong and controlled by CP...
China’s retail chain Wumart Stores Inc will acquire a bulk of CP Group’s stores in mainland China and take a stake in one of the Thai group’s companies in an all-stock deal worth $374 million, helping Wumart to grow its footprint in northern China, Reuters reported on October 15.
Wumart, an operator of supermarkets, has agreed to buy a majority of the CP Lotus retail stores in China for $302 million, the companies said in a joint statement. Wumart will also gain a 10 per cent stake in CP Lotus, which is listed in Hong Kong and controlled by CP Group, the conglomerate run by Thai billionaire Dhanin Chearavanont.
CP Lotus, which has 57 retail stores in China, will part with 36 of its stores in Beijing, Shanghai and various provinces. The company made a net loss of $7.7 million in the six months ended June. It will own a 13.8 per cent stake in Wumart at the close of the deal. Wumart has a market capitalisation of $2.4 billion, while CP Lotus has a market value of $373 million.
CP Group has interests spanning poultry and animal feed, supermarkets and auto making, and has a long history in China as the first multinational to invest in the country’s agri-business in 1979. It was later tasked with helping to modernise China’s farm sector.
