CASINO SET TO BUY 40 SUPERMARKETS IN THILAND

Casino Guichard Perrachon SA, the French retailer, may have beaten Tesco Plc in its bid to buy 40 supermarkets in Thailand from Carrefour SA, the Financial Times reported, without saying where it got the information.

The purchase, which will cost Casino Guichard more than 700 million euros ($957 million), comes after an auction of a package of Carrefour stores in Thailand, Malaysia and Singapore, the FT said. Around six bidders, including Tesco, Casino, Dairy Farm International Holdings Ltd. and Aeon Co., submitted second round bids for all or part of the assets last week, the FT said.

The auction for the 19 Malaysian stores and two Singapore stores is continuing, the FT said.

To contact the reporter responsible for this story: Blanche Gatt in London atbgatt@bloomberg.net

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net

CASINO POISED TO ACQUIRE THAI CARREFOUR 'S SUPERMARKETS

Andrea Felsted in London and Scheherazade Daneshkhu in Paris, 17:12, Saturday 13 November 2010

Casino (Paris: FR0000125585 - news) , the French retailer, is poised to acquire Carrefour (Paris: FR0000120172 - news) 's Thai stores, put up for sale as part of an auction of the south east Asian assets of the world's second biggest supermarket group by sales.

The outcome of the hotly contested auction means Casino looks set to beat Tesco (LSE: TSCO.L - news) , the world's third biggest supermarket by sales, to the 40 Thai supermarkets put up for sale by Carrefour.

Tesco had been seen as a leading contender for the Thai assets given that it is the market leader in the country, and that it has a history of doing deals with Carrefour.

However, Tesco may have been forced to divest some of the stores for competition reasons, making a deal uneconomical. It was also said not to have bid as aggressively as some other potential buyers.

TESCO ชื่อโผล่ประมูลรอบสอง CARREFOUR ไทยชิงดำ 4 ราย

เผยโฉมหน้าผู้ท้าชิงดีลซื้อ "คาร์ฟูร์" 3 ประเทศอาเซียน ยักษ์ค้าปลีกอังกฤษ "เทสโก้" ชื่อกลับมาโผล่ในรอบ 2 เผยสนซื้อกิจการทั้ง 3 ตลาด ด้าน "แดรี่ ฟาร์ม" ปลื้มเฉพาะมาเลย์-สิงคโปร์ ตามรอย "อิออน" และ "นาวิส แคปิตอล" ไม่สนตลาดไทยที่มี 4 รายรอชิงดำ ทั้งเทสโก้ กลุ่มกาสิโนจากฝรั่งเศส กลุ่มเซ็นทรัล และกลุ่มเบอร์ลี่ ยุคเกอร์

รอยเตอร์สรายงานว่า "เทสโก้" จากอังกฤษ และ "แดรี่ ฟาร์ม" ของสิงคโปร์ มีชื่ออยู่ในการยื่นประมูลซื้อกิจการคาร์ฟูร์ในรอบที่ 2 ซึ่งครบกำหนดเส้นตายไปเมื่อวันที่ 5 พฤศจิกายน ทั้งที่เทสโก้ถูกตัดชื่อในการประมูลรอบแรก

ทั้งนี้ คาดกันว่ามูลค่ากิจการใน 3 ตลาด ทั้งไทย มาเลเซีย และสิงคโปร์ น่าจะอยู่ที่ราว 1 พันล้านดอลลาร์ และการประมูลจะแยกเป็น 2 ส่วน โดยส่วนหนึ่งจะเป็นสินทรัพย์ในไทย และอีกส่วนหนึ่งจะเป็นสินทรัพย์ในมาเลเซียและสิงคโปร์

TESCO AND DAIRY FARM BID FOR CARREFOUR ASSETS

(Reuters) - Britain's Tesco (TSCO.L) and Singapore's Dairy Farm (DAIR.SI) are among those to submit second-round bids for French retailer Carrefour's (CARR.PA) Southeast Asian assets, sources familiar with the matter told Reuters on Sunday.

Carrefour, the world's No. 2 retailer, had set a November 5 deadline for second-round bids in an auction which is expected to fetch $1 billion, the sources said.

The auction has generated strong interest, mostly from trader buyers, the sources said.

The supermarket operator is selling its shops in Malaysia, Singapore and Thailand to focus on markets where it holds leading positions.

BIDDERS CIRCLE CARREFOUR'S SE ASIA ASSETS

BANGKOK — A bidding war is heating up for Carrefour's supermarkets in Thailand, Malaysia and Singapore as the French retail giant plans its exit after failing to take a dominant position in the region.

Carrefour, the world's second-biggest retailer behind US colossus Wal-Mart, is looking to offload its 43 Thai, 23 Malaysian and two Singaporean hypermarkets in a sale some estimates suggest could net a billion dollars.

Analysts believe Carrefour's eagerness to sell up reflects the fact that, despite its large foothold and the robust health of the markets, the firm has trailed competitors such as Britain's Tesco in terms of market share.

"Carrefour is the second-biggest retailer in the world. Perhaps being in last place in Thailand is a reason they want to sell their business here," said Jit Siratranont, deputy secretary general of the Thai Chamber of Commerce.

ชิงดำ CARREFOUR เงินถึง ใจถึง คว้าชัย

"คาร์ฟูร์" ประกาศขายกิจการใน 3 ประเทศในเอเชียตะวันออกเฉียงใต้  ทั้งในไทย  มาเลเซีย และสิงคโปร์   สร้างความฮือฮาให้กับวงการค้าปลีกทั่วโลก  เพราะ "คาร์ฟูร์" ถือเป็นไฮเปอร์มาร์เก็ตชั้นนำระดับโลก

สำหรับในประเทศไทย  ที่ "คาร์ฟูร์"  ถูกจับตามองเป็นพิเศษ  เพราะด้วยขนาดที่ใหญ่และมีจำนวนสาขารวมถึง 44  แห่ง มากกว่าทั้งในมาเลเซีย และสิงคโปร์  การเสนอตัวประมูลรอบแรก ผ่านพ้นไปด้วยดี โดยมีผู้ประกอบการที่ล้วนอยู่ในระดับบิ๊กของแวดวงต่างๆ ทั้งในโลคัลและอินเตอร์เนชั่นแนล ที่เข้าร่วมเสนอตัวประมูล และมีผู้ผ่านเข้ารอบ 2 เพียง 4 บริษัทเท่านั้น ได้แก่ กลุ่มกาสิโน  ซึ่งเป็นผู้ถือหุ้นของบิ๊กซี ซูเปอร์เซ็นเตอร์ในเมืองไทย  กลุ่มเซ็นทรัล  ภายใต้ตระกูล "จิราธิวัฒน์"   เบอร์ลี่ ยุคเกอร์ (BJC)  บริษัทคอนซูเมอร์รายใหญ่ในกลุ่มนายเจริญ  สิริวัฒนภักดี  ค่ายเบียร์ช้าง  และ ปตท.  บริษัทยักษ์ใหญ่ด้านพลังงาน

ขณะที่ผู้ที่ไม่ผ่านการประมูล ประกอบไปด้วย เทสโก้  เครือข่ายค้าปลีกรายใหญ่จากอังกฤษ  อิออน กรุ๊ป ยักษ์ค้าปลีกจากญี่ปุ่น  และแดรี่ ฟาร์ม  อินเตอร์เนชั่นแนล โฮลดิ้งส์  กลุ่มบริษัทสิงคโปร์ โดยทั้ง 4 บริษัทที่ผ่านการประมูลจะต้องนำเสนอแผนงานอีกครั้งในเดือนตุลาคมนี้  ซึ่งเป็นการบ้านที่หนักหน่วงว่าใครจะนำเสนอเม็ดเงินได้โดนใจ และมีแผนงานที่เข้าตา ที่ "คาร์ฟูร์"  ต้องการมากที่สุด

"เบอร์ลี่-ปตท."เต็มสูบแย่งซื้อ"คาร์ฟูร์" สินค้าระทึกยักษ์ค้าปลีกผูกขาดตลาด

จับตาคาร์ฟูร์ประมูลขายสาขาในไทย พลิกภาพธุรกิจค้าปลีก เปิดเดิมพันชิงวอลุ่มการค้า 3 หมื่นล้าน ซัพพลายเออร์ชี้ใครได้ไปอำนาจต่อรองในมือเพิ่มพรวด สองยักษ์ เบอร์ลี่ฯ-ปตท.เดินหน้าเต็มสูบ "ฐาปน สิริวัฒนภักดี" ยันขอสู้สุดตัว สานโมเดลธุรกิจตั้งแต่ต้นน้ำยันปลายน้ำ ขณะที่บิ๊ก ปตท.หวังเป็นจิ๊กซอว์ปรับโครงสร้างรายได้

การประกาศขายธุรกิจในไทย มาเลเซีย และสิงคโปร์ ของคาร์ฟูร์ค่ายค้าปลีกยักษ์ใหญ่เป็นลำดับ 2 ของโลก จะเป็นการพลิกโฉมวงการค้าปลีกในในภูมิภาคนี้ โดยเฉพาะในไทยซึ่งตลอดหลายปีที่ผ่านมาทั้งคาร์ฟูร์ บิ๊กซี เทสโก้ โลตัส แม็คโคร รวมถึงท็อปส์ แข่งขันกันอย่างรุนแรง

วอลล์สตรีต เจอร์นัล รายงานว่า การเสนอประมูลซื้อกิจการห้างคาร์ฟูร์ในเอเชียตะวันออกเฉียงใต้ รอบแรกเมื่อต้นเดือนกันยายน คาร์ฟูร์ได้ตัดชื่อของเทสโก้ ค้าปลีกรายใหญ่จากอังกฤษ และอิออน กรุ๊ป ของญี่ปุ่นออกไป คงเหลือผู้เสนอประมูล 4 ราย คือ กาสิโนจากฝรั่งเศส ผู้ถือหุ้นใหญ่ บิ๊กซี ซูเปอร์เซ็นเตอร์ ในประเทศไทย กลุ่มเซ็นทรัล เบอร์ลี่ ยุคเกอร์ และ ปตท. โดยที่การประมูลรอบ 2 จะมีขึ้นในเดือนพฤศจิกายนนี้

รายงานระบุว่า คาร์ฟูร์ต้องการจะขายกิจการในสิงคโปร์ ไทย และมาเลเซีย และหวังว่าจะทำรายได้ประมาณ 1 พันล้านดอลลาร์ โดยคาร์ฟูร์มีสาขาในเอเชีย 385 สาขา ส่วนในไทยมี 44 สาขา, มาเลเซีย 23 สาขา และสิงคโปร์ 2 สาขา

วงการค้าปลีกประเมินว่า เมื่อเทสโก้ถูกตัดออกไป ไม่มีสิทธิ์เสนอราคารอบที่ 2 ทำให้การช่วงชิงธุรกิจคาร์ฟูร์ในประเทศไทยเหลือเพียงกาสิโน (ผู้ถือหุ้นใหญ่ในบิ๊กซี) เซ็นทรัล เบอร์ลี่ ยุคเกอร์ และ ปตท. ซึ่งแน่นอนว่าไม่ว่าใครได้ไปจะส่งผลกระทบต่ออนาคตธุรกิจค้าปลีกไทย โดยเฉพาะ

เซ็กเมนต์ไฮเปอร์มาร์เก็ต เนื่องจากคาร์ฟูร์มียอดขายโดยรวมสูงถึง 3 หมื่นล้าน

ในขณะที่ธุรกิจค้าปลีกในซีกไฮเปอร์ มาร์เก็ตซึ่งมีราคาเป็นจุดขายสำคัญ การนำวอลุ่มยอดขายมาเป็นเงื่อนไขในการต่อรองเพื่อให้ได้ต้นทุนต่ำที่สุดคือหัวใจของธุรกิจนี้

อย่างไรก็ตาม แหล่งข่าวกล่าวว่า หากกาสิโนเป็นผู้ชนะก็ยังไม่สามารถแซงหน้าเทสโก้ โลตัส เพราะวอลุ่มรวมจะอยู่ที่ประมาณแสนล้าน

CARREFOUR PRUNES BIDDERS LIST AFTER FIRST ROUND

Carrefour Ratchadaphisek, Bangkok, Thailand 

Carrefour has reportedly narrowed down the list of groups that it may sell its Southeast Asian outlets to, with rivals Aeon, Tesco and Dairy Farm reportedly out of the running. According to media reports, some of the bidders that have made it through to the second round include Casino, Central Group, Berli Jucker, and PTT. 

If confirmed, the decision would be a major setback to Tesco and Aeon, which had been seen as frontrunners for the stores, which fit in with their aggressive expansion plans in the region. The reports said that the firms being cut out were believed to have submitted a price that Carrefour found too low. 

The second round bids are reportedly due in November.

CARREFOUR WEEDS OUT BIDDERS FOR ASIA ASSETS

HONG KONG: French retailer Carrefour SA has removed several potential buyers from the bidding for its stores in Southeast Asia, including Britain's Tesco PLC and Japan's Aeon Co., the Wall Street Journal reported on Saturday. 

The newspaper, quoting sources familiar with the matter in its online edition, said others cut out of the bidding included Dairy Farm, which teamed up with its parent, Jardine Matheson Holdings Ltd. It said bidders admitted to the second round included Casino of France, together with Thailand's Big C Supercenter PCL which it part owns, Thai retail group Central Group, Thai consumer products manufacturer Berli Jucker PCL and Thailand's PTT PCL. 

Carrefour wants to sell its stores in Malaysia, Singapore and Thailand at a potential price of $1 billion to focus on markets where it holds leading positions. In recent years, Carrefour has withdrawn from other Asian countries, including Japan and South Korea.

CARREFOUR SAID TO LIST TESCO, CASINO AS POTENTIAL UNIT BUYERS

Lars Olofsson, chief executive officer of Carrefour SA.

Carrefour SA, the world’s second- biggest retailer, put Tesco Plcand Casino Guichard-Perrachon SA on a shortlist of potential buyers for its Southeast Asian units, a deal that may be valued at about $1 billion, said three people with knowledge of the matter.

The potential buyers, which also include Japan’s Aeon Co., made indicative bids and will be asked to make binding offers for Carrefour’s Thailand, Malaysia and Singapore businesses around the end of October, said the people, who asked not to be identified because the talks are confidential.

PTT BIDS $600 mln CARREFOUR 'S THAI ASSETS

Chief Executive Prasert Bunsumpun

* Carrefour assets will help PTT expand retail business

* Media reports Central Group joining bidding (Adds quotes, details)

By Pisit Changplayngam

RAYONG, Thailand, Sept 8 (Reuters) - Thailand's top energy firm, PTT Pcl (PTT.BK: Quote), said on Wednesday it had put in a bid to buy the Thai operations of French retailer Carrefour SA (CARR.PA: Quote), which analysts expect to fetch about $600 million.

Carrefour, Europe's top retailer, wants to sell its stores in Malaysia, Singapore and Thailand at a potential price of $1 billion to focus on markets where it holds leading positions.

In recent years, Carrefour has withdrawn from other Asian countries, including Japan and South Korea, to focus on growing markets such as China and India.

PTT joined an increasingly crowded race: at least four retailers from Europe and Asia have put in first-round bids. [ID:nTOE68004Q]

"We have already submitted a bid for the first round. We are waiting for the next round," Chief Executive Prasert Bunsumpun told reporters.

CARREFOUR'S ASSETS SALE GENERATES INTERESTS IN US

NEW YORK: The move by French hypermarket chain, Carrefour, to sell its stores in Malaysia, Singapore and Thailand has generated interests in the US.


US institutions involved in merger and acquisition activities are closely monitoring the developments. Almost all major US dailies, including some local provincial newspapers, have been carrying reports about it.


“Carrefour’s move is of interest for businesses here because many, like the French retailer, are also eyeing the emerging markets of China and India for further growth,” a Wall Street analyst told Bernama. Carrefour is keen to move to India where it sees a huge middle-class consumer base with big purchasing power and appetite for foreign consumer goods.

The analyst said major US stores, which were interested to enter India, were trying to “learn” from the experiences of Carrefour’s bid to penetrate the Indian market.

Foreign retailers have devised a way to circumvent the restrictive regulations that do not allow retailing by foreign companies.

They have to set up wholesale operations to comply with the maze of Indian regulations.

The offers for Carrefour’s 69 outlets in Malaysia, Singapore and Thailand were supposed to have been received last Wednesday.

Among those bidding were reportedly Japanese rival Aeon, Britain’s Tesco and France’s Casino Gulchard-Perrachon SA.

Aeon’s bid has not surprised US analysts who said that the Japanese firm had previously acquired Carrefour’s assets in Japan in 2005. Also in the race are Singaporean firms – NTUC FairPrice and the Dairy Farm International Ltd. — Bernama

Sale of Carrefour may interest Competition Commission

PETALING JAYA: The sale of hypermarket Carrefour’s Malaysian outlets may be closely watched by the soon-to-be-formed Malaysian Competition Commission, according to lawyers familiar with the new Competition Act.

This is because some of the bidders are believed to be existing hypermarket players such as Tesco, Dairy Farm (which owns the Giant chain) and Aeon Co Ltd, the Japanese retail group that runs the Jusco stores.

According to some estimates, Tesco enjoys a 30% market share of the Malaysian hypermarket industry by sales, followed by Giant (24%) and Jusco (22%).

Carrefour itself has a share of about 15%. Hence, if Tesco were to buy all the Carrefour stores in Malaysia, it would emerge as the clear leader in the Malaysian hypermarket sector with a 45% market share.“Any of the big hypermarkets getting Carrefour would end up as the single largest player, raising concerns of a dominant position in the market,” said one Kuala Lumpur-based corporate lawyer who declined to be named.

Malaysia’s Competition Act 2010, which will come into force on Jan 1 next year, is intended to prevent large companies from engaging in monopolistic and cartel activities.

Section 10 of the Act prohibits abuses by enterprises occupying a “dominant position” in the market they are operating. “Dominant position” is defined in the Act as the ability of such businesses to adjust prices or dictate trading terms in the market without effective constraint from competitors or consumers.

However, another lawyer pointed out that unlike in other markets, where merger and acquisition deals require an approval from the competition regulator, the Competition Act does not have such a stipulation.

“Instead, the Act only kicks in when it is proved that a player has abused its dominant position,” he said.

Tesco is said to have put in a bid for the more than 60 Carrefour stores in Thailand, Malaysia and Singapore and it has been reported that Tesco sees this as part of its strategy to conquer Asia and cement its position as a global force in supermarket retailing.

Carrefour’s stores are expected to fetch about US$1bil (RM3.12bil) and Carrefour may decide to sell them piecemeal, if single-store or country sales will achieve a better price. Carrefour’s Thai business may be worth US$500mil to US$600mil, while the Malaysian and Singapore operations may be valued at US$350mil to US$400mil, according to some reports.

The Carrefour portfolio consists of 40 supermarkets in Thailand, 19 in Malaysia and two in Singapore.

Meanwhile, it has been reported that other bidders for Carrefour’s Malaysian assets include French retailer Casino and a consortium led by Malaysia-based private equity firm Navis Capital Partners.

Navis, which is run by former executives of the Boston Consulting Group, has not bid for the assets in Thailand, Reuters reported.

Navis recently completed the raising of a US$1.2bil fund called Navis Asia Fund 6 from global investors, it was reported.

According to its website, Navis invests in growth companies in South and South-East Asia and has about US$3bil in capital committed to it.

Reuters reported that the large number of bidders for Carrefour meant there would be a second round of bidding after a few were shorlisted. Carrefour had split the sale into two, with the Singapore and Malaysia business being offered in one deal and Thailand being sold separately.

Goldman Sachs Group Inc and UBS AG are advising Carrefour on the deal.

The French hypermarket group is said to have been planning to sell its assets because it wanted to focus on its business in China and India, which offer high-growth potential.

RETAILERS JUMP FOR CARREFOUR SE ASIA ASSETS

(Reuters) - At least four retailers from Europe and Asia are poised to submit first-round bids for Carrefour SA's roughly $1 billion-worth of Southeast Asian assets on Wednesday, sources said, showing robust demand for the retail operations.

France's Carrefour, Europe's top retailer, is exiting Singapore, Malaysia and Thailand to focus on markets where it has a leading position, sources with knowledge of the matter have previously told Reuters.

The race has drawn in France's Casino Guichard Perrachon SA and Britain's Tesco Plc as well as regional players like Dairy Farm which owns Giant and Cold Storage chains in Southeast Asia, sources said.Japan's No.2 retail group Aeon has also thrown its hat into the ring, sources said on Wednesday, and appointed Nomura to advise it on its bid.

Acquiring Carrefour's 40 stores in Thailand, 19 in Malaysia and two outlets in Singapore would almost triple Aeon's chain in the three countries to 99 stores.

Aeon will make one bid for Carrefour's Malaysian and Singapore stores, and a separate bid for the outlets in Thailand, according to the three sources, who were not authorised to speak on the matter publicly.

Other parties said to be interested in the sale included, Thailand's Berli Jucker Pcl and Thailand's biggest energy company PTT Pcl.

For a graphic on Thai GDP and expected business sentiment, click here r

The appeal of Carrefour's Southeast Asia chains lies in an expected acceleration of consumer spending in the three Southeast Asian markets due to strong economic growth. Several strategic buyers are hoping to consolidate their positions in these countries.

"Any buyer of these assets would have to increase profitability by 3-4 times to achieve a cost of capital return," said London-based RBS analyst Justin Scarborough

He said the $1 billion sale tag "seems rather high" at around one times sales for businesses with relatively low margins.

THAI RACE

Thailand, where Tesco is a leading player in the hypermarket or superstore segment and Carrefour is No.4, likely is the most sought-after assets followed by Malaysia, according to a source with direct knowledge of the deal.

The sources did not want to be named because of the sensitivity of the auction process.

Carrefour had split the sale into two, with the Singapore and Malaysia business being offered in one deal and Thailand being sold separately, sources said.

"This is really about Thailand and Malaysia," the source said, adding the Singapore business was small with two stores.

Phillip Securities Thailand has put a sale price of 16 billion to 19 billion baht ($496-590 million) on the Thai operations.

"We were amazed by the number of people at shopping malls even on weekdays, which supports our bullish view on domestic consumption and the Thai economy," said CLSA analyst Pattawan Phanussopakul in a note to clients on Wednesday.

Carrefour and Dairy Farm declined to comment on the sale and the other companies mentioned were not immediately available for comment.

Goldman Sachs Group Inc and UBS AG are advising Carrefour on the deal. Casino is being advised by Deutsche and RBS, while Dairy Farm seeking advice from Rothschild, sources said.

Carrefour has 626 stores in Asia, with more than two-thirds in China alone. Indonesia has 76, Taiwan 65, Malaysia 19, Singapore two and Thailand 40, including 39 hypermarkets.

In recent years, Carrefour has pulled out of Japan and South Korea and the latest exit comes as Carrefour battles sluggish sales in Europe.

In 2009, Asia accounted for 7.9 percent of Carrefour's sales of 85.9 billion euros ($111 billion), while Thailand contributed 9.1 percent of Asian sales, based on the company's latest accounts, giving Thailand sales of about $800 million.

In Thailand, Carrefour has a market share of around 2 percent behind CP All Pcl, Tesco and Big C Supercenter Pcl, part-owned by Casino, the top three retailers there, according to RBS.

(Additional reporting by Vidalon Dominique in PARIS, Saeed Azhar in SINGAPORE; Editing by Valerie Lee)

TESCO LOOKS AT GROWTH IN EAST

TESCO is looking at the $1billion (£650million) sale of supermarket stores in the Far East by French retail giant Carrefour.

Sources in the Far East said Britain’s largest supermarket group was among a number of large foreign retailers interested in the 61 stores across Singapore, Malaysia and Thailand as they jockey for position in some of the world’s fastest-growing economies.Other bidders are said to include private equity groups and local operators. Tesco’s rivals are thought to include France’s Casino Guichard Perrachon and Japan’s second-biggest retail group Aeon, as well as local players Dairy Farm.

Tesco is keen to expand in Asia, highlighting the region has providing a “significant long-term growth opportunity”. It has continued to invest in its businesses there throughout the downturn. The supermarket group has already embarked on an aggressive expansion programme in Thailand, opening 92 stores there last year, and is looking to grow its Malaysian business by 27 per cent this year. It is the market leader in both countries where consumer spending has jumped on their strong growth.

A Tesco spokesman said the company “did not comment on market rumours or speculation”.
Carrefour is looking to sell the stores as part of a move away from those countries where it had little chance of becoming market leader and into those where it could be. It has put an $800million to $1billion price tag on the stores. Some analysts said with such strong interest, Carrefour has a good chance of reaching the upper level of its price range.

Some of the bids are thought to include all the stores, while others are for those in individual countries. However, Tesco is thought to be bidding for all the stores.

Carrefour will retain a significant business in China and will keep stores in Indonesia and Taiwan. Asia is responsible for around 8 per cent of its sales.

TESCO BIDS FOR CARREFOUR'S ASIAN STORES

Tesco has joined a bidding war for a raft of stores being put up for sale by Carrefour of France.
The world third-largest retail group by sales, Tesco is one of around a dozen companies in the auction, sources said.

The grocery giant already has a sizeable operation in Asia. Its biggest single business is in South Korea, which last year had sales of £4.2billion. It also has outlets in China, Japan, Malaysia and Thailand.


Several international retail groups are understood to have signalled their interest in the Carrefour assets. Private equity groups are in the running, and the list of bidders includes Singapore-based Dairy Farm and Aeon of Japan.

The businesses put up for sale by Carrefour comprise 61 stores, most of which are in Thailand, with the rest in Malaysia and Singapore. Carrefour hopes to secure around £650million for the bundle of assets now up for grabs.

Tesco is already market leader in Thailand and Malaysia with grocery market shares of 13 per cent and 10 per cent respectively.

Carrefour is undergoing a major restructuring exercise under chief executive Lars Olofsson.he has spelled out plans to withdraw from markets where the company is only a small player. It wants to concentrate its investment in countries where it is already market leader or where it has a reasonable prospect of being a major force.

The French group is the second-largest retailer in the world after Wal-Mart of the US. It has already pulled out of southern Italy and is weighing up plans to withdraw from Portugal.

Carrefour is expected to hold on to its stores in China, Indonesia and Taiwan. Tesco has been equally clear about its plans to invest heavily in the Far East, as it looks for opportunities to expand its business, which is approaching saturation in the UK.

The company is Britain's largest non-food retailer as well as the largest grocer. Sales last year were around £800million a week.

The company has opened in the US, but last year showed heavy losses - and outgoing chief executive Sir Terry Leahy admitted that the picture will be little better Stateside in 2010-2011.Tesco shares rose 9p to 416p, buoyed by the general rise in the stock market.

In the UK, it emerged this week that Tesco is slashing about 2,000 management roles at its Express convenience stores as part of a restructuring plan.

Tesco declined to comment on the Carrefour auction.