China Resources Enterprise has said it may partner with Tesco to bid for billionaire Li Ka-Shing’s Hong Kong supermarket chain, according to reports.
China Resources – which Tesco this month announced it was entering into a joint venture with to merge its 131 China stores with the group – said it will consider selling non-core assets to fund a purchase of the ParknShop chain.
ParknShop is operated by Hutchison Whampoa, which is Li Ka-Shing’s biggest company. It is understood ParknShop has attracted eight offers from suitors this month.
Frank Lai, chief financial officer at China Resources said yesterday: “We will consider to bid with Tesco; it’s one of the discussions we have with them.” Lai said. The purchase could help China Resources “increase market share, improve efficiency and achieve economy of scale” in Hong Kong, he said.
ParknShop is a “quality asset” well operated by Hutchison Whampoa, he added, declining to say how much his company would be willing to pay.