FILE PHOTO: Shoppers are seen outside one of the biggest Parknshop Superstores, owned by tycoon Li Ka-shing, inside a shopping mall in Hong Kong July 25, 2013. REUTERS/Bobby Yip/File Photo

Hutchison, Jardine in talks to merge supermarket business in Hong Kong, sources say

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HONG KONG, April 17 : CK Hutchison Holdings and Jardine Matheson Holdings, two of Hong Kong's biggest conglomerates, are in talks to merge their supermarket divisions in the city, said two people with knowledge of the matter.

The talks between Hutchison and Jardine Matheson's retail unit DFI Retail have been going on for a while, said the people, who declined to be named due to confidentiality considerations.

Hutchison has reached out to a number of parties to discuss potential options for its ParknShop supermarket chain, said one of the sources.

The Financial Times first reported the talks between Hutchison and Jardine on Friday.

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Hutchison declined to comment, while Jardine referred a Reuters request for comment to DFI. A spokesperson for DFI said they do not comment on speculation or rumours.

Hutchison's A.S. Watson group, which owns ParknShop, competes against DFI Retail, which runs the Wellcome supermarket chain.

The market share of the combined group would be less than 50 per cent, according to the FT report.

Hutchison is exploring an initial public offering of A.S. Watson, which owns other chains including Superdrug and The Perfume Shop in the UK. The conglomerate is seeking a valuation of around $30 billion for its retail unit's listings in Hong Kong and London as soon as the second quarter, two people with knowledge of the matter told Reuters in January.

Source: Reuters

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