CP, hot on deals, firm up its automobile manufacturing deal with China’s SAIC

CP, hot on successive take-over deal, is firming up its entry into automobile. CP vice chairman Thanakorn Seriburi, recently decided to push the firm into a joint venture with China’s SAIC Motor Corp., to manufacture automobiles in Thailand. “As ethnic Chinese in Thailand, we want to cooperate with China,” Seriburi says. “This will also be CP’s first opportunity to move into automobile manufacturing.” SAIC is framing this heavyweight alliance with Thailand’s biggest multinational corporation as seizing the chance to expand into the Association of Southeast Asian Nations (ASEAN) market. “They decided to move into Thailand because it is the center of automotive manufacturing in Southeast Asia, as well as the existence of their old friend the CP.” Back when Seriburi was chairman of a joint venture company in Shanghai that manufactured air conditioners, its president was Hu Maoyuan, who is now chairman of SAIC. Seriburi says this personal connection was a factor in sealing the deal. CP recently did a Merger and Acquisition deal in China for an insurance firm, and currently in Thailand, a deal to purchase Siam Macro, a cash and carry retailer (Source).

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