Hong Kong’s competition watchdog is closely monitoring a potential megadeal between the city’s two largest supermarket chains amid a continued decline in grocery sales since 2020.
The Competition Commission told the South China Morning Post on Friday that it was aware of media reports about the potential merger.
“The commission is aware of the relevant media reports and is paying close attention to the matter and any future developments,” it said.
Conglomerates Jardine Matheson and CK Hutchison, founded by Hong Kong’s richest man Li Ka-shing, are reportedly in negotiations to merge their respective supermarket divisions, Wellcome and ParknShop.
The talks have reportedly been under way for some time but a deal is not imminent. An internal assessment reportedly projected the combined group’s market share would be less than 50 per cent.
But lawmaker Bill Tang Ka-piu said the two supermarket groups operated nearly 600 stores in the city, which could account for 70 to 80 per cent of the sector.