Ayala Corporation is bringing back Makro to the Philippines after signing a new partnership deal with the retailer’s global operator, CP AXTRA.
In a statement, Ayala said its retail arm, ACX Holdings, will work with CP AXTRA to develop a large-format food retail, wholesale, and e-commerce business in the country through Makro’s re-entry.
“This partnership…allows us to put into action our strategy of offering Filipinos more choices by bringing the best of the world to the Philippines,” said Ayala’s head of corporate strategy and business development, Mark Uy.
The companies previously signed agreements to establish Makro in the Philippines under a new venture called M&Co Corporation, a partnership between ACX and CP AXTRA’s subsidiary Makro ROH Company Limited.
The expanded partnership will also allow ACX to explore further co-investment opportunities with CP AXTRA’s affiliates. CP AXTRA is Asia’s leading operator of Makro and Lotus’s stores.
Makro originally entered the Philippine market in 1996 through a joint venture between SM Investments, Ayala Land, and founding firm SHV Holdings. Ayala exited the business in 2004, calling wholesale “not among its core competencies.”
SM Investments gradually took over the company, acquiring full ownership by 2009 and later converting Makro stores into hypermarkets.