LISTED conglomerate Ayala Corp. is bringing back grocery chain Makro to the Philippines after signing a partnership with Thai retail giant CP Axtra Public Company Ltd. (CP AXTRA).
In a statement on Wednesday, Ayala Corp. said its wholly owned subsidiary ACX Holdings Corp. had executed definitive agreements with CP AXTRA to relaunch Makro stores in the country.
The partnership between ACX Holdings and CP AXTRA subsidiary Makro ROH Co., Ltd. also formed a joint venture, M&Co. Corp., which will operate the Makro stores.
M&Co. seeks to offer “a modern shopping experience with a wide range of food and nonfood products at accessible prices for both consumers and small business operators,” Ayala Corp. said.
“We are excited to partner with CP AXTRA to bring Makro back to the Philippines. Together, we seek to build on CP AXTRA’s proven success in delivering quality products at more affordable prices through the Makro format,” said Mark Robert H. Uy, head of corporate strategy and business development at Ayala Corp.
Makro, a Dutch international brand, first entered the Philippine market in 1996 through a joint venture among SHV Holdings N.V., Ayala Corp., and Sy-led SM Investments Corp.
Ayala later sold its 28% stake to the SM Group, which in 2009 rebranded Makro outlets into its own hypermarket and supermarket formats.
SHV later divested its Asian Makro operations, which are now operated by Thailand’s Charoen Pokphand Group through CP AXTRA.
Tanit Chearavanont, group chief wholesale business officer at CP AXTRA, said the partnership is aligned with the company’s strategy to expand its regional footprint.
“The Philippines represents one of the most dynamic and fast-growing markets in Southeast Asia,” he said.
“Through this partnership, CP AXTRA’s expertise in wholesale and retail management is combined with Ayala Corp., a trusted local partner with strong market presence, established customer base, and extensive land and mall development expertise,” Mr. Chearavanont said.
Shares of Ayala Corp. rose 0.4% or P2 on Wednesday to close at P502 each. — Beatriz Marie D. Cruz
