Tesco says buys Makro Malaysia stores

KUALA LUMPUR, Dec 6: Tesco Plc., Britain's biggest retailer, said on Wednesday it agreed to buy Malaysian retail chain Makro Cash&Carry for an undisclosed sum, as it looks to boost market share in the region.

Tesco said the purchase of Makro's eight Cash&Carry stores, totalling more than 800,000 sq ft of sales area, would almost double its floor sales space in Malaysia.

Makro's local managing director, Pieter Boone, did not answer phone calls seeking comment.

''This strategic move will help the company to strengthen its business in Malaysia and move close to becoming market leader,'' Tesco said in its statement, adding that the eight stores are in prime sites.

Makro, owned by Dutch firm SHV Holdings NV, employs 800 staff and competes with supermarket chains such as Dairy Farm and those belonging to Tesco.

In August, SHV announced plans to sell its Malaysian Makro Cash&Carry stores after it reviewed its portfolio, though it gave no reason for the decision at the time.

Privately-owned SHV, founded in 1896 after the merger of a number of coal trading companies, is also the world's largest distributor of liquefied petroleum gas (LPG).

REUTERS