Carrefour Taiwan has been fully acquired by Uni-President Group! On July 19, 2022, Carrefour announced that it had successfully sold its 60% stake in Taiwan to its long-term partner and co-shareholder, Uni-President Group. After the transaction, Uni-President Group will become the sole owner of Carrefour Taiwan.
Carrefour Taiwan Changes Hands
It is reported that since its establishment in 1987, Carrefour Taiwan has been a joint venture between Carrefour and Uni-President Group, with shareholdings of 60% and 40% respectively. In this transaction, Uni-President Enterprises and President Chain Store Corporation (PCSC) repurchased 49.5% and 10.5% of Carrefour Taiwan's shares respectively. After the deal, Uni-President Enterprises holds 70% of Carrefour Taiwan, while PCSC holds 30%.
According to media reports, over the past 20 years, Carrefour has been shrinking its operations, focusing mainly on European markets such as France, Spain, Italy, and Belgium, as well as South American markets like Brazil and Argentina. To date, it has exited more than 20 countries and regions, including Japan, South Korea, Russia, and the United States. In the past two years, Carrefour China has also seen store closures due to the sluggish development of the physical retail industry. Before the sale of Carrefour Taiwan, it was Carrefour's only foothold in the Asian market. Thus, this transaction is likely related to Carrefour's overall development strategy.
According to AMZ123, on April 20, Carrefour released its Q1 2022 financial report, showing revenue of €20.239 billion, a year-on-year increase of 9%, mainly driven by robust growth in Brazil and Spain. Revenue in the Taiwan market fell 0.6% to €700 million. In contrast, Uni-President Group has been continuously expanding its business territory.
Uni-President's Total Revenue Exceeds NT$600 Billion
It is understood that Uni-President Group, founded in 1967, has been in operation for nearly 56 years. It owns Uni-President China (00220.HK), which covers food and beverage businesses, and PCSC, which primarily operates convenience stores. According to the 2022 annual report, Uni-President China achieved revenue of approximately RMB 28.257 billion, a year-on-year increase of 12%; the gross margin of its products was 29%, a decrease of 3.6 percentage points.
Looking at Uni-President Group's development history, in 1978 it cooperated with the American Southern Company to open the first 7-ELEVEN convenience store in Taiwan, successfully introducing this convenience store model. Subsequently, Uni-President Group cooperated with Carrefour to introduce the first hypermarket in Taiwan in 1987, and now Carrefour is ubiquitous in Taiwan. In 1992, Uni-President Group officially invested and set up factories in mainland China. Products such as iced black tea and instant noodles became indispensable in the lives of a generation. In 1998, Uni-President Group cooperated with Starbucks to open a unified Starbucks in Taipei, and to this day, Uni-President still operates Starbucks in Taiwan.
As early as December 2021, Uni-President Group announced the launch of its second 50-year growth momentum. Chairman Lo Chih-hsiung publicly stated that the company will take "lifestyle brands" as its strategic core, with four main axes: manufacturing + R&D, trade + distribution, retail + experience, and alliances + M&A, aiming to build an Asian circulation and lifestyle platform. Therefore, expanding its territory is the purpose behind Uni-President Group's acquisition of Carrefour Taiwan. Moreover, from a business perspective, Uni-President's products mainly include beverages, instant noodles, and other FMCG products. By acquiring Carrefour Taiwan, Uni-President Group has also broadened its sales channels and strengthened its product sales capabilities.
Currently, the Taiwan market presents a "two strong" situation. Industry insiders say that after acquiring Carrefour Taiwan, Uni-President Group's role will change to some extent, being both a retailer and a brand owner. In the future, within the entire Carrefour system, it may specifically target and suppress some major competitors.
In terms of performance, it is reported that at Uni-President Group's shareholders' meeting, Chairman Lo Chih-hsiung stated, "After Carrefour (Taiwan) joins Uni-President Group, our total revenue will immediately exceed NT$600 billion. We should now consider how to achieve comprehensive benefits after the merger and challenge the target of NT$700 billion (approximately RMB 163.1 billion)." Financial data shows that Uni-President Group's 2022 annual revenue exceeded NT$500 billion (approximately RMB 116.1 billion) for the first time, an annual increase of 10.8%.
In the future, Carrefour Taiwan will embark on a new journey as a member of Uni-President Group. This acquisition is just a new beginning, and future development is full of challenges and opportunities. As a member of Uni-President Group, Carrefour Taiwan will enjoy broader resources and support, better leveraging its own strengths and potential. However, the smoke of commercial warfare will not end here. In a highly competitive global market environment, companies need to continuously adapt and innovate to maintain competitiveness and achieve long-term success. What new moves will Uni-President Group make in the future? It is worth looking forward to.