Tesco bidders told to get permission

Tesco bidders told to get permission

A girl joins her parents for a shopping at a branch of the Lotus superstore in Bangkok. (Photo by Pornprom Satrabhaya)
A girl joins her parents for a shopping at a branch of the Lotus superstore in Bangkok. (Photo by Pornprom Satrabhaya)

The Office of Trade Competition Commission (OTCC) has warned large retail companies against violating anti-monopoly laws after Britain's biggest supermarket chain, Tesco, announced this month it is considering selling its remaining Asian businesses in Thailand and Malaysia.

If prospective buyers want to go ahead with the purchase, "they need first to receive permission from the OTCC", Trade Commissioner and commission spokesman Santichai Sarathawanphaet said on Wednesday.

He warned prospective buyers to comply with the 2017 Thailand Trade Competition Act.

Violation of this law will bring about a penalty of 0.5% of the transaction value in the purchase.

Mr Santichai was commenting after many giant retailers showed an interest in the auction of the business which is expected to take place sometime early next year.

The retailers need to make it right under law as any purchase might affect competition in the market and thus need approval from the OTCC, he said.

He said the OTCC has kept a close watch on the issue and will not hesitate in taking action against any wrongdoers.

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