CP AXTRA Public Company Limited, a prominent force in the Asia wholesale and retail industry, is teaming up with the Philippines’ Ayala Corporation to launch M&Co Corporation. This joint venture, which will operate Makro stores in the Philippines, signals a strategic expansion into a dynamic new market.
M&Co Corporation’s structure sees CPAXT, through its subsidiary MROH, holding a 50.1% stake, while Ayala Corporation, a giant in real estate, banking, telecommunications, and renewable energy, owns the remaining 49.9%.
According to Kasikorn Securities analysts, this move is seen as a positive step for CPAXT as it continues its growth trajectory across ASEAN. The Philippine economy presents promising fundamentals with expected GDP growth of 6.1% in 2025, supported by a large and young population of 116.8 million with a median age of 26.1 years, according to IMF forecasts. The addition of a modern trading option with Makro’s Eco Plus store format offers both consumer and micro and SME operators improved access to food and non-food products at competitive prices.
Kasikorn Securities noted that the retail market in the Philippines is valued at around USD 41bn, or roughly 60% the size of Thailand’s retail sector, but with a structurally higher growth trajectory.
By extending its geographical reach to a fourth country, CPAXT is reinforcing its presence in Asia, with existing operations in countries like Cambodia, Myanmar, and India. Analysts at Kasikorn Securities retain an “Outperform” rating on CPAXT, with a target share price of THB 25.6, predicting a price-to-earnings ratio of 21x by 2026.
Suphachai Chearavanont, Chairman of CP AXTRA, emphasized that this venture aligns with the company’s strategic growth agenda, aiming to cement its status as a leading wholesale and retail operator in Asia. He noted that the collaboration benefits from Ayala’s established market presence and is set to unlock significant opportunities within one of Southeast Asia’s most robust markets.
In support of the partnership, Tanit Chearavanont, CP AXTRA’s Group Chief Wholesale Business Officer, shared confidence in Ayala’s prowess to bolster their market endeavor, aiming to offer quality products while supporting local industries. This initiative is set to widen the market access for Thai products internationally and drive support for SMEs and local agriculture.
