(Alliance News) - Tesco PLC's sale of its Thai operations will be closely probed by the South East Asian country's competitions regulator, which is ready to level fines at the supermarket chain if any laws are breached, the Financial Times reported on Wednesday.
Sakon Varanyuwatana, chair of Thailand's Office of Trade Competition Commission, told the newspaper it is ready to block any deals, should it lead to a monopoly.
In December, the FTSE 100 firm confirmed the potential sale of its Asian business, though noted a review of options remains in the early stages. Tesco, which has operations in both Thailand and Malaysia in the region, said the review of the business began after an expression of interest from elsewhere.
The FT said a potential deal could be worth up to USD9 billion, and three expected bidders already have notable retail operations in Thailand.
The FT reported that Bangkok-based conglomerate Charoen Pokphand Group, which owns the 7-Eleven retail brand in Thailand, is among the bidders.
Also among those showing interest, the FT said, are The Central Group of Companies, which has large department store operations, and the retail operations owned by Thai billionaire Charoen Sirivadhanabhakdi. He is also the founder of Thai Beverage PLC, a distillery and beverage firm.
https://www.ft.com/content/d1ad7710-312c-11ea-9703-eea0cae3f0de
Tesco shares were 0.6% lower at 252.90 pence each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Tesco (TSCO)