Makro’s Return to the Philippines: A Partnership Between CP AXTRA and Ayala Corporation
CP AXTRA Public Company Limited, Asia’s leading operator of wholesale and retail businesses Makro and Lotus’s, has made a significant move in its regional growth strategy by executing definitive agreements with Ayala Corporation, one of the Philippines’ largest conglomerates. This partnership marks a major milestone for CP AXTRA as it expands into the ASEAN region, solidifying its position as a leading player in the wholesale and retail industry.
The new entity, M&Co Corporation, will be formed through Makro ROH Company Limited, a subsidiary of CP AXTRA holding 50.1% of the shares, and ACX Holdings Corporation, a wholly owned subsidiary of Ayala Corporation, which will hold 49.9%. This joint venture is poised to revolutionize the retail landscape in the Philippines by offering a modern shopping experience with a wide range of food and non-food products at accessible prices for consumers and small businesses.
A Strong Foundation for Makro’s Entry into the Philippines
The partnership between CP AXTRA and Ayala Corporation represents a significant investment opportunity for both companies. According to Suphachai Chearavanont, Chairman of the Board of Directors and Chairman of the Executive Committee, CP AXTRA Public Company Limited, "This investment represents a significant milestone for CP AXTRA as we expand into the ASEAN region, aligning with our growth strategy to become Asia’s leading wholesale and retail operator." He further emphasized that the Philippines is a market with strong potential, with the International Monetary Fund projecting GDP growth of 5.9% next year — the highest in ASEAN.
Tanit Chearavanont, Group Chief Wholesale Business Officer at CP AXTRA, added: "The Philippines is one of Southeast Asia’s most dynamic markets. Through this partnership, CP AXTRA’s 30 years of expertise in wholesale and retail, combined with Ayala’s strong local presence, will expand access to quality products at competitive prices." This synergy between the two companies is expected to create a ripple effect in the market, supporting SMEs and local farmers while opening opportunities for Thai products abroad.
Mark Uy, Head of Corporate Strategy and Business Development at Ayala Corporation, expressed his enthusiasm for the partnership: "We are excited to partner with CP AXTRA to bring Makro back to the Philippines. Together, we aim to expand consumer choices, raise retail standards, and help Filipinos thrive." This commitment to creating a positive impact on the local economy is a testament to the companies’ shared vision of building a sustainable future for the region.
A Partnership That Leverages Strengths
The expansion into the Philippines underscores CP AXTRA’s regional growth strategy, leveraging the strengths of both organisations to meet evolving consumer needs while supporting SMEs in the local economy. By combining their expertise and resources, the partnership is poised to create a powerful force in the retail industry, driving innovation and growth in the region.
Conclusion
The partnership between CP AXTRA and Ayala Corporation marks a significant milestone in the regional expansion of Makro’s operations. With its focus on offering a modern shopping experience with a wide range of products at accessible prices, M&Co Corporation is set to revolutionize the retail landscape in the Philippines. As CP AXTRA continues to expand its presence in the ASEAN region, this partnership serves as a testament to the company’s commitment to creating sustainable value and driving growth in the local economy.
The companies’ shared vision of building a strong foundation for Makro’s entry into the Philippines is expected to create a lasting impact on the market. With their combined expertise and resources, CP AXTRA and Ayala Corporation are poised to create a powerful force in the retail industry, driving innovation and growth in the region while supporting SMEs and local farmers.
As CP AXTRA continues to solidify its position as Asia’s leading wholesale and retail operator, this partnership serves as a significant step towards achieving its regional growth strategy. With its focus on meeting evolving consumer needs while supporting SMEs in the local economy, M&Co Corporation is set to become a major player in the retail industry in the Philippines.