Max Hypermarkets, Auchan end ties
The failure to convert that agreement into a joint-venture is the reason for ending the relationship
The failure to convert that agreement into a joint-venture is the reason for ending the relationship, Max Hypermarkets said on Tuesday.
"Max Hypermarkets and Groupe Auchan continued deep into 2013 to look into the possibilities of creating a joint-venture to facilitate Groupe Auchan investment in India, which could comply with Indian FDI (foreign direct investment) regulations. Despite their best efforts, the parties could not facilitate this proposition," Max said.
"Therefore, by common agreement, the 13 Max Hypermarkets will no longer operate under the Auchan banner by January 2015 at the latest," it said.
This is the second break-up for Max as it ended its ties with Dutch retailer Spar International in May 2012. After tying up with Auchan, Max rebranded its existing 'SPAR' stores in Bangalore and Mangalore to 'Auchan'.
In September 2012, the UPA government allowed foreign direct investment in multi brand retail subject to approval of respective states. Barring UK-based Tesco, none of the foreign chains has applied for FDI in multi brand retail so far.
Max Hypermarket is committed to growth and development of the hypermarket and supermarket business in India and will continue its investments under a new brand name, the Bangalore based company said.