Ayala Corporation is bringing back the big-box retailer Makro to the Philippines, this time in partnership with Thailand’s CP AXTRA Public Company Limited. In Thailand, CP AXTRA is known for its Makro and Lotus retail businesses.
This comes two decades after the group relinquished its interest in the original Makro business in the country, which was established in partnership with the Netherlands’ SHV Holdings and SM Investment Corp.
In a regulatory filing on Wednesday, Ayala announced that it had signed a definitive agreement for the revival of Makro in the Philippines with the two groups’ units — ACX Holdings and Makro ROH Company Limited, respectively — establishing M&C Corp.
The Ayala group will hold a 49.9 percent stake in M&C Corp.
“The company will focus on operating Makro stores in the Philippines, offering a modern shopping experience with a wide range of food and non-food products at accessible prices for both consumers and small business operators,” Ayala said in a statement.
Mark Uy, Ayala’s head of corporate strategy and business development, said the partnership seeks to build on CP AXTRA’s proven success “in delivering quality products at more affordable prices through the Makro format.”
“This partnership is in line with Ayala’s strategy of working with world-class companies to expand consumer choices, raise retail standards, and help Filipinos thrive,” he said.
“This partnership marks another significant step in Ayala’s continued expansion into the Philippines’ consumer sector. It also underscores Ayala’s ability to attract leading global partners to invest in the Philippines and help build businesses that enable people to thrive,” Uy added.
Tanit Chearavanont, Group Chief Wholesale Business Officer for the Stock Exchange of Thailand-listed CP AXTRA, said the company ventured into the Philippines, noting that it represents “one of the most dynamic and fast-growing markets in Southeast Asia.”
“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, an established customer base, and extensive land and mall development expertise. This new partnership aligns with CP AXTRA’s strategy to expand our regional footprint, while positioning the company for sustainable long-term growth and value creation,” he said.
Ayala’s original exposure to Makro was through a 28 percent stake held by its unit, Ayala Land Inc., in Makro Pilipinas, which was established in 1996 with SHV and SMIC each owning 36 percent. Ayala Land sold its stake in 2004, with SMIC taking full control by 2009 and reformatting Makro into the current SM Hypermarket.
