Court to mull CP-Tesco merger

Lotus unveils new brand “Lotus’s” at two pilot stores, including this Ramintra branch.
Lotus unveils new brand “Lotus’s” at two pilot stores, including this Ramintra branch.

The Administrative Court has agreed to consider a petition addressing the merger of CP Retail Development Co and Tesco Stores (Thailand) Ltd.

A group of consumer advocate organisations, led by the Foundation for Consumers, filed the petition on March 14 over the Trade Competition Commission's (TCC) decision to approve the merger, urging the court to issue an injunction to prevent possible negative effects on consumers.

On March 22, the court decided to take up the case and asked the petitioners to submit a written explanation as to why an injunction is necessary, along with evidence to support the claim.

Saree Ongsomwang, secretary-general of the Foundation for Consumers, told the media yesterday that the group planned to ask the court for more time to prepare the written explanation.

The court had asked them to send in the requested documents by the end of today.

She said the group's members will meet sometime this week, before reaffirming their position on the issue.

"We stand by the stance that the TCC's decision is against the anti-monopoly law," she said.

In November, TCC approved the CP-Tesco deal but imposed certain conditions, including a three-year ban on acquisitions in the same sector with aim to cushion any impacts the transaction may cause.

TCC said while Tesco's acquisition by CP Retail will increase Charoen Phokphand Group's dominance in the market, the deal won't result in a monopoly.

It also said while the deal could significantly reduce competition in the retail sector, it won't have an adverse impact on the economy, or on consumer interests.

TCC President Sakol Varanyu-wattana added the Administrative Court's decision to take up the case will not affect the CP-Tesco deal as it only meant the court agreed to hear the case, not rule on the merger.

Vocabulary

  • acquisition: the process of buying something; something that has been bought - การซื้อ, การได้มาซึ่งการเข้าถือสิทธิ์
  • adverse: having a negative or harmful effect on something - ในทางลบ, เป็นผลร้าย
  • advocate: someone who strongly and publicly supports someone or something - ผู้สนับสนุน
  • consumer: someone who buys and uses goods and services - ผู้บริโภค
  • impose: to introduce something, such as a new law or new system and force people to accept it - นำกฎหมายมาบังคับใช้
  • injunction: an order form a court that prevents someone from doing something - คำสั่งคุ้มครองชั่วคราว, คำสั่งห้าม
  • merger: the act of joining two or more organisations or businesses into one - การรวมเข้าด้วยกัน
  • monopoly: complete control over something by one organization or person - ระบบผูกขาด
  • mull: to think carefully about something over a period of time - ครุ่นคิด
  • petition: an official document in which you ask a court to take legal action - คำร้องต่อศาล
  • reaffirm: to give your support to a person, plan, idea, etc. for a second time; to strengthen - ยืนยันใหม่
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