Thailand’s BJC ready to audit Metro after buy-out
Thailand’s BJC ready to audit Metro after buy-out
Berli Jucker Plc, Thailand’s leading retail group and new owner of Metro Cash & Carry Vietnam, has committed not to change current wholesale suppliers or employees.
Aswin Techajareonvikul, chief executive officer of Berli Jucker Plc (BJC) made the announcement to VIR last week as the CEO visited Metro in Ho Chi Minh City to reorganise the company’s departments. He added that he was keen to meet BJC’s 4,000 employees, wholesale suppliers and partners in order to reassure people that no major changes would occur following the hand-over from the previous German owners.
“The quality of goods from Vietnam and Vietnamese consumer demand will decide which wholesalers BJC uses in the future,” added Aswin Techajareonvikul
Techajareonvikul added that the transaction between BJC and Germany retailer Metro AG would be confirmed with the authorities next month and be concluded by the end of this year.
However, BJC remained vague about expansion plans, business predictions or a potential name change which Techajareonvikul said were all under discussion.
Techajareonvikul said that Metro Cash & Carry Vietnam employed 4,000 people and currently boasted 19 cash-and-carry outlets in 14 major cities across Vietnam. Metro had been a key purchase for the Thais due to the extensive existing chain. “$879 million is a suitable price for the Metro chain here,” underlined Aswin.
Last month, the eurozone’s second-largest retailer signed an agreement with BJC to sell its Vietnam business, including 19 wholesale stores and its associated real estate portfolio.
Metro Vietnam has a 22 per cent share of the country’s modern grocery market and a total net sales area of almost 110,000 square metres.
He revealed that after merger, BJC would employ 14,000 people including 7,000 Vietnamese. BJC will select quality goods from Vietnam and Thailand.
In December 2012, BJC entered in Vietnam by setting up joint venture with 75 per cent stake in Thai Corporation International Vietnam (TCI) to open a supermarket chain in Vietnam. TCI now has a presence in 63 provinces with 220 supermarkets and more than 40,000 retail stores in Vietnam.
It then acquired a 65 per cent stake in Thai An Joint Stock Company, a distribution and logistics firm for food and non-food products in northern Vietnam, and will extend Berli Jucker’s distribution network and sales in Vietnam and neighbouring countries.
In mid-2013, BJC invested in the Family Mart system after the Japanese partners withdrew from the joint venture with Vietnam’s Phu Thai Group and changed the name of the chain to B’s Mart.
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