Tops absorbs MaxValu as Central Retail expands

Legacy Central Retail Corporation, operating through its food division, has finalized the acquisition of Japanese supermarket chain MaxValu in Thailand. All 30 MaxValu branches will be transformed into the Central Retail Group's Tops brand starting October 1. The deal, struck on August 7, sees Central Retail Corporation's subsidiary, Central Food Retail, acquire 100% of AEON (Thailand) Co, the operator of the MaxValu brand.

AEON (Thailand) has a registered capital of 890 million baht, with each share valued at 100 baht. The acquisition will be funded by Central Retail's internal cash flow, avoiding external borrowing. The move aims to bolster the company's supermarket network, reinforce its food business, and increase its customer base by approximately 900,000.

The 30 MaxValu outlets range from small units in buildings to large standalone stores across Bangkok and surrounding provinces. While AEON (Thailand) has experienced declining performance, with revenue dropping from 4,441 million baht to 4,053 million baht and losses increasing from 186 million baht to 266 million baht over the past year, some retail analysts speculate that CRC may repurpose the larger standalone sites, leveraging its property and hotel assets.

MaxValu employees have been informed that the chain will persist until September 30, with closures commencing October 1. The acquisition comes after a robust first half of the year for Central Retail, which reported a 42.5% increase in core profits as it continued its store expansion and upgrades.