According to international business newspaper The Financial Times, cited by Hong Kong Chinese-language newspaper Ming Pao, Jardine Matheson is in discussions with CK Hutchison to acquire the ParknShop supermarket chain and integrate it with its DFI Retail Group’s Wellcome brand, in a move aimed at strengthening its position in a rapidly evolving retail landscape.
The potential deal comes as traditional brick-and-mortar supermarkets face mounting pressure from the growth of e-commerce and shifting consumption patterns, according to Ming Pao. Increasingly, residents are traveling to mainland China for shopping, further challenging local retailers.
Talks between the two companies have been ongoing for some time. Four sources familiar with the matter confirmed that negotiations are active, although no financial details or valuation figures have been disclosed.
Market data shows that in 2023, CK Hutchison’s A.S. Watson Group and Jardine’s DFI Retail Group together accounted for nearly 90% of the local supermarket sector. However, internal assessments suggest a different outlook.
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“The actual market share after the merger of the two supermarkets would be less than 50%,” a source said, indicating that competition concerns may be less significant than headline figures suggest.
The proposed transaction remains under discussion, with no confirmed timeline for completion or clarity on potential regulatory review.
