Cosco Capital Inc., the retail holding company of tycoon Lucio Co. and Thailand’s Siam Global Public Corp., terminated their planned joint venture partnership in the Philippines.
“At present, the management of both parties mutually decided to no longer proceed and finally terminate the agreement,” Cosco said in a disclosure to the stock exchange Thursday.
Cosco said the decision was mutually arrived at after strategically reviewing the current market conditions.
Cosco and Siam Global were supposed to form a joint venture company to operate a one-stop warehouse for building and construction-related materials, home and garden decorative goods, home improvement goods, construction equipment and tools.
The home appliance industry is currently facing a slowdown in sales due softness of demand for major home improvement and finishing construction supplies as well as delayed construction projects.
Wilcon Depot Inc. and All Home Corp., the listed companies engaged in home improvement and finishing construction supplies retailer, both reported lower profits in the first nine months of 2024.
Cosco and Siam Global signed a joint venture partnership in 2022. Under the plan, a new joint venture company will be set up, with Siam Global taking 55 percent and Cosco, 45 percent.
The initial capital for the new company was supposed to be P500 million.
Both parties planned to construct and open three to give stores in the next 12 to 18 months in the National Capital Region, CALABARZON and Region 3.
Siam Global is one of the largest distributors in Thailand, selling construction materials and home decorative items with one stop service.Jenniffer B. Austria
Cosco has a portfolio of business interests in retail, real estate, wine and liquor and oil and minerals. The company’s subsidiaries include Puregold Price Club Inc.; Office Warehouse Inc.; Ellimac Prime Holdings Inc.; The Keepers Holdings Inc.; and Alcorn Petroleum and Minerals Corp.
