Supermarket chain Carrefour’s Taiwan branch to buy local rival, Wellcome

03, Jun. 2020

Photo by Sonder Quest on Unsplash
Photo by Sonder Quest on Unsplash

TAIPEI, NNA - French retail giant Carrefour Co.’s Taiwan subsidiary will acquire British supermarket chain Wellcome’s local operations for 95 million euros ($107 million) to grow business.

Carrefour Taiwan announced Tuesday it has signed an agreement with Hong Kong-based Dairy Farm International Holdings Ltd., a subsidiary of British conglomerate Jardine Matheson Holdings Ltd., for the stake takeover of Dairy Farm’s Wellcome operations in Taiwan.

The takeover will make Carrefour Taiwan’s second largest supermarket chain after Pxmart Co., which owns 1,001 outlets.

The deal will add 199 Wellcome stores and 25 Jasons Market Place shops, plus land and logistics centers, to Carrefour Taiwan’s current 137 Taiwan outlets, the French retailer said. The transaction is expected to be completed by the end of the year.

Carrefour ranks as Europe’s largest supermarket chain by volume of stores, according to Forbes Media statistics. The group earned 80.7 billion euros in 2019 sales and its Taiwan branch contributed 1.9 billion euros, a financial report showed.

Wellcome, also a major supermarket chain in Hong Kong, entered Taiwan 33 years ago. After selling to Carrefour, it will specialize in selling fresh produce and develop online shopping services, according to the statement. Its physical stores will also serve as pickup sites for online shoppers.

The merger allows Carrefour to add stores and “leverage” Wellcome’s customer base, making expansion faster, Taiwan’s Central News Agency said, quoting the deputy director of the Business Model Innovation Research Division under the Commerce Development Research Institute.