<article>Publicly-listed Charoen Pokphand Indonesia has announced a plan to acquire the local operator of 7-Eleven convenience stores, Modern Sevel Indonesia, for Rp 1 trillion ($75 million).</article>

Publicly-listed Charoen Pokphand Indonesia has announced a plan to acquire the local operator of 7-Eleven convenience stores, Modern Sevel Indonesia, for Rp 1 trillion ($75 million).
The purchase is expected to be completed in June, Charoen said in a statement.
Modern Sevel has a total of 175 7-Eleven outlets as of September 2016, mostly in Jakarta. In Thailand, Charoen’s affiliate Charoen Pokphand Group already operates the 7-Eleven trademark, with more than 9,500 outlets.
“If the transaction succeeds, the company will be able to expand its business in to the distribution sector, while supporting its current business of processed food and beverages,” Charoen management team stated.
The acquisition will be financed using the company’s internal cash reserves, Charoen officials said, as quoted by local media reports.
In 2016, Charoen booked almost $3 billion in revenue from sales in Indonesia alone. The company has been expanding into the beverage segment in recent years, to complement its processed chicken nuggets products.
Meanwhile, Modern Sevel’s parent firm, Modern International, has admitted that the business “suffered losses in recent years as a result of high market competition, and because the development of the business required substantial capital in the future.&#8221; In 2015, Jakarta decided to ban alcohol sales at small retail stores, which at the time was one of the key driving sales for Modern International.
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Indonesia: Poultry firm Charoen Pokphand to acquire local 7-Eleven operator

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