Hong Kong's Jardine Matheson Group Plans to Acquire CK Hutchison's ParknShop Supermarket Business

According to a report by the Financial Times today, Hong Kong's long-established British-funded Jardine Matheson Group is in discussions with Hong Kong's richest man Li Ka-shing's CK Hutchison Group to acquire CK Hutchison's ParknShop supermarket business and merge ParknShop with Jardine's Wellcome supermarket. A.S. Watson Group, a subsidiary of CK Hutchison, operates ParknShop, whose main competitor is Wellcome supermarket, part of Jardine Matheson Group's DFI Retail Group. According to ParknShop's official website, ParknShop was established in 1972 and is Hong Kong's largest offline and online chain supermarket, with over 260 branches in Hong Kong and Macau, meeting customer needs with various store formats. Comprehensive reports from the Financial Times, Reuters, and Hong Kong media such as Ming Pao indicate that both parties have been negotiating the transaction for some time, but valuation details have not been disclosed. The reports state that in 2023, ParknShop and Wellcome combined accounted for nearly 90% of Hong Kong's supermarket market share. However, with increasingly fierce e-commerce competition and Hong Kong consumers shopping in mainland China for lower prices, market competition is intensifying. A relevant person stated that according to internal assessments, the combined market share of ParknShop and Wellcome would be less than 50% after the merger. Reuters reported that CK Hutchison declined to comment, and Jardine Matheson and DFI Retail Group did not immediately respond. (Editors: Chen Kai-yu/Chou Hui-ying) 1150417