CK Hutchison denies PARKnSHOP sale rumours

CK Hutchison has denied rumours of selling its supermarket arm PARKnSHOP, ending speculation about a possible deal with the owner of Wellcome, Jardine Matheson. This follows reports in April that Jardine Matheson was in talks with CK Hutchison over a potential acquisition of PARKnSHOP. 

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Speaking at CK Hutchison’s general meeting on Thursday, executive director and deputy managing director Dominic Lai said the group currently has no plans to sell PARKnSHOP and it will not comment on market rumours.

Lai also acknowledged that PARKnSHOP's employees have been working diligently in a highly competitive market. Their efforts, such as strengthening procurement and offering customer discounts, ensure that Hong Kong shoppers enjoy good value for money. He added that management truly recognises and appreciates their hard work.

Regarding AS Watson Group, which includes PARKnSHOP, CK Hutchison has previously said it regularly assesses potential spinoff listing opportunities. Lai also confirmed at the meeting that no decision has been made so far.

Established in 1972, PARKnSHOP is a major food retail brand under CK Hutchison's AS Watson Group. It currently operates about 240 stores across Hong Kong and Macau. Along with Wellcome, owned by the Jardine Matheson-backed DFI Retail Group, PARKnSHOP has long been one of the two dominant players in the local supermarket market. 

CK Hutchison has completed two major deals this year, raising substantial cash. These include the sale of its stake in UK telecom operator VodafoneThree, which generated over HK$450 billion, and the disposal of UK power distributor UK Power Networks by a consortium led by CK Infrastructure Holdings, which raised more than HK$110 billion.

Group chairman Victor Li said the group's recent major deals were done simply because "the price was right." With the global environment becoming more complex and unpredictable, the group stays focused on financial stability. Its cautious approach helps it face challenges while staying ready to seize opportunities when they arise.

“In the current environment, opportunities require patience, but decisions must be precise. The rougher the waves, the steadier we must stand. In short: cash is king,” Li said. 

MARKETING-INTERACTIVE has reached out to PARKnSHOP for a statement.

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