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Business deals

CP Group to buy Tesco's Thai and Malaysian units for $10.5bn

Thailand's top three conglomerates fight hard for retail dominance

Tesco's Thai unit ran 1,967 stores, serving over 13 million customers each week as of August 2019. Its Malaysian business, which began in 2002, operated a network of 68 stores. (Photo by Akira Kodaka)

BANGKOK -- Thailand's largest conglomerate Charoen Pokphand Group has reached an agreement with British grocery chain Tesco to purchase its businesses in the kingdom and Malaysia for $10.57 billion, a deal set to become one of Asia's biggest this year.

The deal values 86.9% of Tesco Lotus, the Thai business, at $9.9 billion and 100% of Tesco Malaysia at $700 million. Tesco began operating in Thailand in 1998 and ran 1,967 stores, serving over 13 million customers each week as of August 2019. Its Malaysian business, which began in 2002, operated a network of 68 stores.

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