Lotus’s Stores (Malaysia) Sdn. Bhd. has signed an agreement to acquire shares in The Food Purveyor Sdn. Bhd., a move that covers four distinct brands and a total of 50 stores.
Thai-listed CP Axtra Public Company Limited (CPAXT), the parent company of the Lotus’s subsidiary, confirmed that the acquisition includes the brands Village Grocer, B.I.G., BSC Fine Foods, OTK, and The Food Merchant.
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Lotus’s Malaysia expands retail footprint
CPAXT stated that the deal is expected to be completed by Q4 of this year, pending approvals from the relevant regulatory authorities.
“This deal covers 100% of The Food Purveyor Sdn. Bhd’s shares, with a total investment of RM1.66 billion, and it’s not expected to have any major impact on CPAXT’s financials,” the statement read.
They also believe the investment will bring benefits, as combining it with Lotus’s 70 existing stores in Malaysia will give the company a total of 120 stores nationwide, strengthening its diverse customer base and reaching all consumer segments.
“This investment in The Food Purveyor is part of CPAXT’s long-term regional expansion strategy, supporting sustainable growth and moving us closer to our goal of becoming a leading wholesale and retail operator in the region,” they added.
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It also added that it is aiming to expand into prime urban locations and high-income neighbourhoods, giving it faster access to strategic areas and customers with strong purchasing power.
“Lotus’s brings extensive experience in managing large-scale supermarket and hypermarket networks, while The Food Purveyor specialises in premium retail, boosting growth potential across all customer segments,” it said.
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