atans1

Brits outsmart Thai Chinese billionaire twice over

In Uncategorized on 14/03/2020 at 4:32 am



Tesco bought what became its crown jewel from Thai conglomerate CP Group in 1998, during the 1998 Asian crisis, for about US$180m. CP Group was short of cash.

It is selling the business back to CP for U$10bn, about 15% more than expected. The sale was done as global markets went into meltdown.

For CP’s controlling shareholder, Thai Chinese billionaire Dhanin Chearavanont the purchase had more to do with ego than economics.

He may be saved by the Thai competition authorities. CP’s existing extensive retail businesses may mean that authorities block the sale.

  1. I believe Tesco Lotus was a joint venture in which CP had a minority stake, and it sold out to focus on 7-11 in which it had majority control. No doubt psychology plays a part in the high price CP is willing to pay.

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