Taipei, Jan. 24 (CNA) Simple Mart Retail Co., which runs a supermarket chain Simple Mart in Taiwan, has decided to spend NT$125 million (US$3.96 million) to acquire the OKmart convenience store chain.
A board meeting held on Friday approved a plan for Simple Mart to acquire a 100 percent stake in OKmart and its intellectual properties from the chain's owners Holmsgreen Holdings Co. and Lai Lai Department Stores Co.
Despite the acquisition, Simple Mart said it and OKmart will remain two independent brands.
Simple Mart said the acquisition is expected to strengthen its service quality and boost operational performance and eventually diversify products and services for consumers.
Industrial sources told CNA the acquisition will allow Simple Mart to extend its reach into the convenience store business and integrate the large logistics resources of both retail segments.
The sources said the deal will help Simple Mart gain greater bargaining power in pricing negotiations, offsetting the challenges faced by a medium-sized supermarket chain.
Currently, Simple Mart, a community-based supermarket operator, has more than 800 outlets around Taiwan, with 37 percent of its stores operated as franchises.
The company plans to increase its number of outlets to 900 by the end of 2026, raising the franchise ratio to 45-50 percent.
Meanwhile, OKmart is estimated to have less than 800 stores and has been facing strong competition with other convenience store chains.
Simple Mart said after the acquisition deal is completed, it will report to competent authorities to complete the ownership transfer.
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