Chairman Dhanin Chearavanont said the economic downturn in Europe and the US has depressed share prices for many companies to levels very attractive for outside investors. "The share prices of stocks in the European markets are cheaper than in the past," he told a forum hosted by a Thai newspaper, Prachachart Turakij.
Dhanin said the euro-zone crisis is far from over, and weak economic conditions in Europe have opened the door for financially strong Asian companies to expand on the continent. There had been earlier reports that CP Group might bid for Iglo, but the company passed on that, and he played down whether some other European acquisition might be completed soon, saying time is needed for feasibility studies.
Earlier this year, Adirek Sripratak, the president and chief executive of CP flagship Charoen Pokphand Foods (CPF), said his company was in talks with three international food processors, with a possible acquisition to be completed by year-end. Teerasak Urunanon, an executive vice-president of CPF, declined to identify the firms the group was considering for investment now but said any target would have to offer synergies with the group's existing businesses.
Dhanin, meanwhile, called on the Thai government to offer greater support for small and medium-sized Thai enterprises to invest abroad, particularly in China. He expressed confidence that China, currently the second-largest economy in the world, will shortly overtake the US for the top spot. Property-related industries, services and agriculture are among the most attractive sectors for investors in China, said he said, adding that the Chinese government is expected to take additional action to boost its economy.
"I recommend the government keep an eye on the Chinese government's policies," he said. "If there are any policies that are interesting and useful for small Thai businesses, then the Thai government should consider issuing similar policies to support overseas investment." But any move now to invest in France's Carrefour would be ironic. Two years ago, CP Group had expressed interest in bidding for Carrefour assets when the European retailer announced plans to divest itself of its hypermarket chain in Thailand, Singapore and Malaysia. Big C, an affiliate of Casino, ultimately won the bidding and acquired Carrefour's 44 branches in Thailand.
