TCC Group Bids For Tesco’s Asia Stores

To purchase the Asian assets of U.K. grocer Tesco, Charoen Sirivadhanabhakdi, one of the wealthiest men in Thailand, has obtained almost $10 billion in financing commitments. His TCC Group has put in a bid for the Tesco’s assets, with funding already in place in the event that the bid is successful, The Wall Street Journal reported, citing unnamed sources.

Tesco, which is one of the world’s biggest grocers, said late last year that it had begun to examine options for its Malaysia and Thailand business. The grocer has been decreasing its international presence to home in on its local market, where it is engaged in a price war with eCommerce rivals and discount supermarkets.

Central Group and CP All PCL, the other two conglomerates in Thailand, have also reportedly put forward bids.

Over 12 domestic and international banks from China, Japan, Malaysia, Thailand and Singapore have agreed to provide TCC with the financing, per an unnamed source in the report. The bank names were not disclosed.

Tesco came into Thailand in 1998 by purchasing a majority stake in Lotus Supercenter from Charoen Pokphand Group for $365 million. Tesco Lotus now has approximately 2,000 store locations in operation in the nation. The British group has 74 locations in Malaysia, where it has operated since 2006.

The company’s recent moves mirror those of its counterparts Casino Guichard-Perrachon and Carrefour SA, which have also left operations in nations like Thailand, Vietnam and Indonesia.

The news comes as Tesco has finished its exit from China with the $357 million sale of its joint venture portion to state-run partner China Resources Holdings (CRH). The British supermarket company had created the Gain Land venture with CRH in 2014, joining the 131 locations of the British group in China with its partner’s almost 3,000 locations. The stake’s disposal is said to let Tesco continue simplifying and homing in on core operations. The company also reportedly pointed out that the proceeds would go toward general corporate purposes.