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Lotus's Malaysia Sdn Bhd, a subsidiary of Thai-listed CP Axtra Public Co Ltd, has proposed a RM1.66 billion deal to acquire The Food Purveyor Sdn Bhd
In a press release issued yesterday, 4 March, CP Axtra said The Food Purveyor operates 50 premium supermarket retail stores under the brands Village Grocer, B.I.G., BSC Fine Foods, OTK, and The Food Merchant.
The Thai retail group is seeking to acquire 100% of its issued and paid-up share capital, valued at RM1,660,000,000, stating that the deal "will not have any material impact on CP Axtra's financial position".
According to the company, the acquisition reflects its strong commitment to expanding strategic investments in high-potential international markets
The transaction is expected to be completed by the fourth quarter of 2026, subject to approval from the relevant regulatory authorities.
CP Axtra, which also operates the Makro brand in Thailand, said the proposed acquisition is expected to deliver several strategic benefits to the group, such as:
- Supporting retail business expansion into Malaysia, a strategic market underpinned by solid economic fundamentals and strong consumer purchasing power.
- Expanding into the premium customer segment through The Food Purveyor's 50-store network. Combined with 70 Lotus's stores in Malaysia, CP Axtra will operate a total of 120 stores nationwide, strengthening its diversified customer base and serving all consumer groups.
- Expanding into prime locations in urban areas and high-income neighbourhoods, enhancing the ability to access strategic areas and high-purchasing-power customer segments more rapidly.
- Leveraging the strengths and expertise, Lotus's brings extensive capabilities in large-scale supermarket and hypermarket network management, while The Food Purveyor specialises in premium retail, enhancing growth potential across all purchasing power segments.
In December 2020, CP Axtra acquired around 60 grocery stores in Malaysia from British retail giant Tesco for USD10.6 billion (about RM41 billion)
Tesco and Tesco Extra stores nationwide were successfully rebranded to Lotus's Malaysia in February 2021, with their signature blue storefronts repainted in a new turquoise hue.
The Food Purveyor was established in 2017, with roots dating back to 1997, reported The Malaysian Reserve.
In 2022, Grab Holdings Ltd carried out a similar deal when it acquired Jaya Grocer, which operated around 40 outlets at the time, for RM1.8 billion.
