Jardine and Hutchison reportedly in talks to merge HK's supermarkets

Jardine Matheson, the parent company of local supermarket chain Wellcome, is reportedly in talks with CK Hutchison over a potential acquisition of its supermarket arm, PARKnSHOP.

The two conglomerates have been negotiating for a while, but no details about a possible valuation have been released, according to Financial Times.

Wellcome is wholly owned by DFI Retail Group, which is part of the Jardine group. This potential deal would bring together Hong Kong’s two largest supermarket players, paving the way for a major shake-up in the city’s grocery retail landscape.

Citing data from the US Department of Agriculture, the report noted that in 2023 CK Hutchison’s Watson Group and DFI Retail together controlled nearly 90% of Hong Kong’s supermarket business. However, internal estimates now put their combined market share at below 50%.

According to the companies' websites, PARKnSHOP now runs more than 240 outlets in Hong Kong and Macau under various brand names, including FUSION, TASTE, TASTE x FRESH, FOOD PARC, and GREAT FOOD HALL. Wellcome, on the other hand, operates a network of over 320 stores, together with Market Place, ThreeSixty, and Oliver's. Official figures also show that Wellcome has about 7,000 workers in Hong Kong, while PARKnSHOP employs roughly 10,000 people across Hong Kong and Macau.

The last time CK Hutchison thought about selling PARKnSHOP was over 10 years ago, but those plans were put on hold in 2013. The company felt that selling to private equity wouldn't bring the best returns for its shareholders, according to the report. Back then, the offers on the table were between US$3 billion and US$4 billion.

Spokespersons for both CK Hutchison and DFI Retail Group told media outlets such as HK01 and HKET that they would not comment on any market rumours or speculation. Meanwhile, a spokesperson for the Competition Commission said it has taken note of the relevant reports and is closely monitoring the situation and any further developments.

MARKETING-INTERACTIVE has reached out to ParknShop, Wellcome and the Competition Commission for a statement respectively.

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