Carrefour has agreed to acquire supermarket chain operator Wellcome Taiwan from Hong-Kong’s Dairy Farm, as it aims to expand its footprint in the market.
The deal, with an enterprise value of €97 million, includes 224 proximity stores, as well as a warehouse.
Following the transaction, Carrefour will take ownership of 199 Wellcome supermarkets and 25 Jasons Market Place stores in Tawain.
Carrefour currently operates 137 stores in Taiwan, including 69 proximity stores under the Market banner.
With its recent acquisition, Carrefour will accelerate its development in Taiwan and the convenience stores format, claiming that it will become the ‘local number two’ in this format.
According to the press release, in 2019, Carrefour posted net sales of €1.97 billion in Taiwan, while Wellcome Taiwan recorded net sales of around €390 million.
By combining the businesses, Carrefour believes customers and team members will benefit from the group’s greater strength and scale as consumers could witness quality, prices and services improve.
Carrefour also said each store will become a new pick-up point for e-commerce orders.
The transaction, subject to customary conditions, is expected to close by the end of 2020. Within 12 months after the closing of the transaction, Carrefour plans to convert the Wellcome stores to its Market banner and the Jasons stores to a Carrefour premium banner.
Earlier this year, Carrefour agreed a deal through its Brazilian subsidiary with Makro Atacadista SA to acquire 30 cash and carry stores, in a transaction valued at 1.95 billion Reais ($450 million).
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