Ayala unit, Thai firm to bring back Makro stores to Philippines

Ayala Corp. subsidiary ACX Holdings Corp. and Thai retailer Makro ROH Company have agreed to bring back Makro stores to the Philipines.

The companies said Wednesday, Sept. 24, that they have entered into definitive agreements to take an equity interest in M&Co Corp., which will operate the Makro stores. ACX will own 49.9% of the venture, while MROH will hold 50.1%, according to a statement.

Makro stores in the country were operated by Pilipinas Makro, a partnership among the Ayala Group, SM Investments, and SHV Holdings. Ayala sold its stake in 2004 and SM Investments rebranded the Makro stores and transformed these into SM hypermarkets "because the concept if wholesale buying no longer appeals to consumers," SM said in 2009.

The partnership to bring back Makro to the Philippines seeks to build on CP Axtra's "success in delivering quality products at more affordable prices," said Mark Uy, head of Corporate Strategy and Business Development at Ayala Corp. CP Axtra is the parent firm of Makro ROH.

For CP Axtra, the venture with Ayala supports its bid to expand its regional footprint, according to Tanit Chearavanont, CP Axtra Group chief wholesale business officer.

ACX said its board approved the deal with MROH on Sept. 19. (Marites Villamor-Ilano)