COSCO Capital, Inc. on Thursday said it has ended its P500-million home improvement warehouse joint venture (JV) with Thailand’s Siam Global House Public Co. Ltd., citing market conditions.
They agreed to terminate the joint venture agreement on Dec. 23, Cosco Capital, which operates S&R Membership Shopping and the Puregold Price Club, Inc. chain of supermarkets in the Philippines, said in a stock exchange filing on Thursday.
“The management of both parties mutually decided to no longer proceed and finally terminate the agreement,” it said. “This decision was mutually arrived at after strategically reviewing the current market conditions.”
In June 2022, Cosco Capital and Siam Global signed a deal to set up and operate a one-stop home improvement warehouse for building materials, construction equipment and tools.
The joint venture had a P500-million initial investment — 55% from Siam Global and 45% from Cosco Capital.
Cosco Capital said the joint venture was part of its plan to expand into a new business and create more income sources.
Siam Global has interests in selling home, building, and construction materials.
Cosco Capital’s net income rose 10% to P10.04 billion in the first nine months from a year earlier as revenue grew 9.2% to P164.06 billion.
The grocery retailing business accounted for 69% of its net income, followed by The Keepers Holdings, Inc. at 22%, commercial real estate segment at 7%, energy and minerals at 1.5%, and specialty retail at 0.5%.
Cosco Capital shares rose 1.33% or seven centavos to P5.35 each. — R.M.D. Ochave