Malaysia-based retail group Macrovalue has purchased DFI Retail Group’s Giant and Cold Storage supermarket chains in Singapore in a S$125 million ($148.5 million) deal.
The transaction includes 48 Cold Storage, 41 Giant outlets, and two distribution centre leases – but no property assets.
Established in 2022 by Andrew Lim Tatt Keong and Datuk Gary Yap, Macrovalue plans to position itself as a major player in the region’s grocery sector. It previously purchased DFI Retail Group’s Malaysian supermarket business.
“We have a whole logistics and supply chain in Malaysia that we can tap on to benefit Singapore customers and give them more value for money,” explained Lim Tatt Keong.
“Bringing these brands together will allow us to build a sustainable, long-term business in the region.”
DFI acquired Cold Storage in 1993 and purchased Shop N Save outlets in 2003, converting them to Giant in 2013.
Giant and Cold Storage are two of Singapore’s mainstream supermarket chains. They operate in an intensely competitive retail market dominated by trade union-owned FairPrice, with 164 stores, and publicly listed Sheng Siong, with 77 outlets.
Following the transaction, Macrovalue plans to expand the supermarkets’ product variety and pricing to cater to various consumer segments.
“We’ll be able to offer a greater variety of merchandise at Cold Storage, such as wines, cheese, and dairy products currently available at our Mercato supermarkets in Malaysia,” explained Lim Tatt Keong.
“For Giant, we aim to provide better prices on essential products imported from Malaysia, such as eggs, chicken, fruits, and vegetables.”
Macrovalue will also expand its retail footprint by opening new outlets in the country.
“We’ll work on adding value through variety, price, and customer experience within a year, as the market expects,” he added.
Macrovalue will not inherit any debt or liabilities from DFI.
“The amount we are paying fully reflects the value of the business, and the price is reasonable and rational,” said Lim Tatt Keong.
The transaction is expected to be completed by the second half of this year.
DFI Retail will now focus on its 7-Eleven and Guardian businesses in Singapore.
