Malaysia’s premium grocery scene could soon be controlled by one of Asia’s most powerful business dynasties.Thailand’s CP Axtra Public Company Ltd has announced plans to acquire The Food Purveyor, the Malaysian company behind Village Grocer, Ben’s Independent Grocer (B.I.G.), The Food Merchant, BSC Fine Foods and Pasaraya OTK, in a deal worth RM1.7 billion.
If regulatory approvals are secured, the acquisition is expected to be completed by the fourth quarter of 2026.
For Malaysian shoppers, the brands involved are familiar fixtures in upscale malls and neighbourhoods. But behind this deal is a much larger story, one that traces back nearly a century and leads to one of the richest families in Asia.
The buyer ultimately belongs to the business empire of Thai billionaire Dhanin Chearavanont, whose family controls the sprawling Charoen Pokphand Group (CP Group).
With a fortune estimated at over US$53 billion the Chearavanont family has quietly built one of the largest conglomerates in the region, spanning food production, telecommunications, finance, retail and global investments.
Now, their retail arm is making a major move into Malaysia’s premium grocery market.
Why CP Axtra Is Buying Village Grocer’s Parent Company
The target of the acquisition, The Food Purveyor, operates some of Malaysia’s most recognisable premium supermarket brands.
Across its portfolio, the company runs over 50 outlets nationwide, including 34 Village Grocer stores, six Ben’s Independent Grocer supermarkets, six ultra-premium The Food Merchant outlets, one BSC Fine Foods store and three Pasaraya OTK supermarkets.
These stores are not just supermarkets. Many are strategically located in prime retail locations within major shopping malls and affluent neighbourhoods, attracting urban professionals, expatriates and high-income households.
For CP Axtra, this makes the acquisition especially valuable.
In its investor presentation, the company explained that the deal allows it to “leapfrog entry barriers to prime, high-income locations”, securing retail spaces that are often extremely difficult for new entrants to obtain.
Rather than building a premium supermarket network from scratch, CP Axtra will gain instant access to a well-established brand portfolio and a loyal customer base.
The Premium Grocery Market Malaysia Is Watching
Malaysia’s premium grocery segment has grown rapidly over the past decade.
Urbanisation, rising incomes and greater demand for imported foods have driven the expansion of upscale supermarket chains across the country.
Two names dominate the segment: Village Grocer and Jaya Grocer.
In 2022, the sector made headlines when Grab Holdings acquired a majority stake in Jaya Grocer, in a deal reportedly worth up to RM1.8 billion.
That move was widely interpreted as a strategic effort by Grab to integrate grocery retail into its delivery, e-commerce and digital ecosystem.
Now CP Axtra’s RM1.7 billion acquisition suggests another powerful regional player is positioning itself in the same market.
What was once a traditional supermarket industry is now becoming a competitive platform involving logistics, supply chains, digital retail and data-driven consumer services.
CP Group Is Already a Major Force in Malaysia
While this deal may appear to mark CP Group’s entry into Malaysia’s grocery industry, the Thai conglomerate is already deeply embedded in the country’s retail landscape.
In 2020, CP Group acquired Tesco’s operations in Thailand and Malaysia for US$10.6 billion, one of the largest retail deals in Southeast Asia.
Tesco Malaysia was subsequently rebranded as Lotus’s, which today operates around 70 stores nationwide.
These hypermarkets primarily serve the mass-market segment, offering groceries, household goods and general merchandise.
The acquisition of The Food Purveyor would therefore expand CP Group’s presence into a completely different part of the market; premium urban supermarkets.
Together, Lotus’s and Village Grocer could give CP Axtra coverage across multiple consumer segments, from everyday family shopping to high-end grocery experiences.
The Synergies CP Axtra Sees
Beyond store locations and brand recognition, CP Axtra believes the acquisition can unlock several operational advantages.
One of the most important benefits is scale. By combining the operations of Lotus’s and The Food Purveyor, CP Axtra expects to strengthen its procurement power, allowing it to negotiate better prices from suppliers and improve supply chain efficiency.
The group also sees opportunities in centralised distribution systems, which can streamline logistics and reduce operational costs across the expanded retail network.
Another key area is private label development. Retail groups increasingly rely on their own house brands to improve profit margins and differentiate themselves from competitors. With a larger retail footprint, CP Axtra believes it can accelerate the development and distribution of these products across its combined store network.
The company has also highlighted potential benefits in omni-channel retail, where physical supermarkets are integrated with digital ordering platforms, delivery services and e-commerce systems.
Together, these efficiencies could help the group strengthen its position in a retail sector that is becoming increasingly competitive.
The Billionaire Who Built the Empire
The expansion of CP Axtra ultimately traces back to Dhanin Chearavanont, the billionaire who transformed a modest family business into one of Asia’s most powerful conglomerates.
The story of Charoen Pokphand (CP) Group began in the 1920s, when two brothers from China opened a small seed shop in Bangkok called Chia Tai, selling vegetable seeds imported from China to Thai farmers. Over time, the business expanded and later adopted the name Charoen Pokphand, meaning “prosperity to consumers.”
The company’s transformation accelerated when Dhanin Chearavanont, the youngest son of the founder, took control. Under his leadership, CP expanded far beyond agriculture into animal feed production, food processing, telecommunications, retail, real estate and global investments, growing into a multinational conglomerate.
Today, CP Group operates in more than 20 countries, with businesses spanning agribusiness, food manufacturing, telecommunications and modern retail.
The Chearavanont family now holds about US$53.3 billion (approximately RM216 billion) in wealth, making them the second-richest family in Asia after India’s Ambanis and the only Southeast Asian family ranked among the world’s 25 richest dynasties.
After nearly five decades leading the group, Dhanin stepped down in 2017 but remains senior chairman. His eldest son Soopakij now chairs the conglomerate, while another son Suphachai serves as CEO.
A Century of Expansion and Big Deals
CP Group’s history is filled with major acquisitions and bold strategic moves.
Among its most notable investments is a multi-billion-dollar stake in China’s Ping An Insurance, as well as major interests in telecommunications through True Corporation.
The group also acquired Siam Makro, one of Thailand’s leading wholesale chains, before expanding its retail operations across the region.
Retail has become an increasingly important pillar of the group’s growth strategy. The US$10.6 billion acquisition of Tesco’s regional operations in 2020 significantly strengthened CP Group’s retail presence in Southeast Asia.
Now the proposed purchase of The Food Purveyor represents another step in expanding that retail network.
What This Means for Malaysia’s Retail Future
If the RM1.7 billion acquisition proceeds as planned, CP Axtra will significantly strengthen its footprint in Malaysia’s grocery sector.
The company will gain a network of premium supermarkets located in high-traffic shopping centres and affluent neighbourhoods, complementing its existing Lotus’s hypermarkets.
Behind the scenes, the deal reflects a broader trend in Southeast Asia, where large regional conglomerates are consolidating retail markets in order to achieve scale, strengthen supply chains and expand digital commerce capabilities.
For the Chearavanont family, the move is another step in a long journey that began nearly a century ago with a small seed shop in Bangkok. Today, that same family is quietly shaping the future of retail across the region, and Malaysia is becoming an increasingly important part of that story.
Sources: 1| 2| 3
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