Company to Sell Supermarket Chain in a Multibillion Dollar Deal
Li Ka-shing confirmed last Saturday that his company Hutchison Whampoa Ltd. is planning to sell his hometown supermarket chain at a price that is said to reach US$ 4 billion as they are stepping up global expansion as the company takes advantage of the low priced assets in weak economics in Europe.
Hutchison Whampoa is considering selling ParknShop supermarket chain which one of the two supermarkets that dominates Hong Kong. While the supermarket chain is in an enviable position, there is no more room for growth in a heavily saturated market. Although no timetable have been set yet for the completion of the review and no assurance is given on whether the process will result in any transactions being completed. Also no offering price has been finalized, but experts said that it would be a multibillion-dollar deal.
ParknShop one of the major supermarket chains in Hong Kong dominates the grocery business generates a revenue of HK$21.7 billion in 2012. Aside from ParknShop Hutchison also operates Watsons a beauty and health care chain and Fortress a electronics appliance chain in Hong Kong.