CRE pulls back from ParknShop race

China Resources Enterprise pulls back after being uncomfortable on price, according to a source, although it is possible the state-backed company may re-join the process at a later stage.
ParknShop is mainly a Hong Kong business but it also has a presence on the mainland, where operates about 65 stores.
ParknShop is mainly a Hong Kong business but it also has a presence on the mainland, where operates about 65 stores.

State-backed China Resources Enterprise has pulled back on its ParknShop bid, according to a source familiar with the matter.

“The company could not get comfortable with the valuation and price,” the source said. According to reports, Hutchison Whampoa is asking about $3 billion-$4 billion for its ParknShop supermarket chain.

However, given the fluid nature of the deal process - where bidders come and go - it is possible that  the company may re-join the process at a later stage.

CRE last week signed a joint venture with UK retailer Tesco to combine their Chinese retail operations. As part of the agreement,...

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