War in Dairy Farm and Tesco on bidding for assets

For bidding on French retailer's Carrefour's (CARR. PA) Southeast Asian assets, Singapore's Dairy Farm (DAIR. SI) and Britain's Tesco (TSCO. L) are in competition with other companies in second round. For second-round biddings in the auction, Carrefour has set the deadline of November 5, 2010. Carrefour is presently the World no. 2 retailer and they expect to fetch $ 1 billion in this transaction.

Carrefour, the supermarket operator would like to focus on the markets where they have leading position so they are selling the retail shops in Thailand, Malaysia and Singapore.

As per the sources, there is strong competition for these assets. As per the sources, Tesco is bidding for the most of the assets, whereas Dairy Farm, which is owned by Jardine Mathseon Holdings Ltd (JARD. SI), would like to buy Singapore and Malaysian assets of the Carrefour.

Other competitors who are in fray are Malaysian private equity fund Navis Capital is bidding only for Singapore and Malaysian assets, while Aeon, which is Japan's No 2 retail giant is bidding for the same assets. Carrefour has divided the auction in two procedures, one is for Malaysian and Singapore assets and other is only for Thai assets.

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