Thailand
Thailand: Limit set for CP to appeal deal ruling
The Charoen Pokphand (CP) Group can challenge the Trade Competition Commission’s (TCC) decision on the Tesco acquisition deal via the Administrative Court within 60 days, the commission said.
The TCC ruled by majority in favour of the transaction, but imposed certain conditions, including a three-year ban on additional acquisitions in the same sector to prevent market dominance by CP Group.
Sakon Varunyuwatana, TCC chairman, said CP Group representatives received the TCC document, which contained the decision, on Monday, adding the group can file a petition with the court if it disagrees with its contents.
Mr Sakon said individual rulings on the deal by TCC members are expected to be made public in two weeks.
Santichai Santawanpas, a TCC commissioner who voted against the Tesco acquisition, said on Moday during a press conference he will further clarify why he disagreed with the deal on Wednesday.
He insisted the press conference was not to oppose the ruling, adding it was intended to provide accurate information to the public about the acquisition.
In its decision on Nov 2, a majority of commission members voted to allow CP Group to proceed with the acquisition, which is worth US$10.6 billion (322 billion baht), with conditions applied.
The commission thought the deal could significantly reduce competition in the sector but would not cause adverse impacts on the economy or the interests of consumers at large.
Under the deal, the Charoen Pokphand Group would acquire 86.9% of Tesco’s Thai operations and 100% of the United Kingdom retailer’s Malaysian business.
As CP already owns the country’s 7-Eleven concession and Makro cash-and-carry stores, the CP-Tesco deal is seen as strengthening CP’s position in the modern trade sector.
Source: https://www.bangkokpost.com/business/2016823/limit-set-for-cp-to-appeal-deal-ruling