Asia’s largest retailer sets sights on ParknShop

Aeon Co Ltd could compete against other Asian retail giants.

Sources said Aeon, which is also Japan's single-largest shopping mall developer and operator, could all be considering bids for Hong Kong’s largest supermarket chain along with China Resources Enterprise Ltd; Australian retailers Woolworths Ltd and Wesfarmers Ltd and China's Sun Art Retail Group Ltd.

Hutchison Whampoa Ltd has set an Aug. 16 deadline for initial bids for the business with an asking price of US$4 billion, according to sources.

Hutchison intends to sell ParknShop to focus more on its health and beauty retail operations that have a bigger global reach and offer higher margins compared to ParknShop.

ParknShop operates 345 stores in Hong Kong, mainland China and Macau. It earned US$2.8 billion in revenue last year. Some 270 stores are in located in Hong Kong.

The main business focus of China Resources Enterprise is the export of mainland Chinese products to Hong Kong. Its retail operations are organized under the China Resources Retail (Group),

Sun Art Retail Group Ltd is one of the largest and fastest growing hypermarket operators in China and has a 14% market share. It operates its hypermarket business under two recognized brands: Auchan and RT-Mart.

Woolworths is the largest retail company in Australia and New Zealand by market capitalization and sales, and the largest food retailer in Australia.

Based in Perth, Wesfarmers Ltd is one of Australia’s largest public companies and one of Australia's largest retailers.