Companies to justify CP-Tesco merger in parliament

The impending Charoen Pokphand Group’s Tesco buyout will be explained by the companies to the House Committee on Commerce and Intellectual Property on Wednesday.

Representatives of Tesco Plc and the CP Group will disclose details of the acquisition deal at the committee’s invitation, said Sirikanya Tansakun, chairwoman of the committee.

Earlier, the committee invited Somsak Kiatchailak, secretary-general of the Office of Trade Competition Commission (OTCC), to testify about the matter.

The government’s competition watchdog early last month approved the Group’s US$10.6-billion acquisition of the British supermarket’s Thai operations. The deal would see CP acquire 86.9% of Tesco’s Thai operations and 100% of the UK retailer’s Malaysian business, prospects that many say give the company an unfair hold on the retail sector in Thailand.

It was reported on Dec 9 that…