Ayala Corp. is bringing back Makro to the Philippines

The country’s oldest conglomerate Ayala Corporation is bringing back wholesale retail chain Makro to the Philippines.

In a disclosure to the Philippine Stock Exchange on Wednesday, Ayala Corp. announced its wholly owned subsidiary ACX Holding Corp. has formed a joint venture with Thai company Makro ROH Company Limited (MROH) —a unit of CP Axtra Public Company Limited.

CP Axtra is is a wholesale and retail business operator, including mall management, in Thailand and overseas, and is part of the Charoen Pokphand Group.

Ayala Corp. said ACX and MROH executed an agreement to pour in respective equity interests of 49.9% and 50.1% in a new entity.

The conglomerate said the new entity, M&Co Corporation, will focus on operating Makro stores in the Philippines.

"We are excited to partner with CP AXTRA to bring Makro back to the Philippines. Together, we seek to build on CP AXTRA's proven success in delivering quality products at more affordable prices through the Makro format," said Mark Uy, head of Corporate Strategy and Business Development at Ayala Corporation.

"This partnership is in line with Ayala's strategy of working with world-class companies to expand consumer choices, raise retail standards, and help Filipinos thrive," he added.

"Through this partnership, CP AXTRA's expertise in wholesale and retail management is combined with Ayala Corporation, a trusted local partner with strong market presence, established customer base, and extensive land and mall development expertise," said Tanit Chearavanont, Group Chief Wholesale Business Officer, CP AXTRA Public Company Limited.

This new partnership aligns with CP AXTRA's strategy to expand our regional footprint, while positioning the company for sustainable long-term growth and value creation," Chearavanont added.

Ayala Corp. said its partnership with the Thai retail giant marks another significant step in its continued expansion into the Philippines' consumer sector. 

Makro, launched in the late 1990s, was a popular membership-only wholesale store in the country as a partnership between SM Group, Ayala Group, and Dutch firm SHV Holdings.

In 2004, the Ayalas sold its 28% in the Pilipinas Makro partnership with SM Group increasing its stake to 60%.

In response to declining popularity of the membership-only business model, SM Group folded the Makro brand into its retail segment, rebranding it as SaveMore and Hypermarket. –NB, GMA Integrarted News