Thai retail giant CP Axtra is strengthening its foothold in Malaysia with a $421.6-million acquisition of supermarket operator The Food Purveyor, a move that will significantly expand its presence in the country’s premium grocery market.

The purchase will bring The Food Purveyor’s portfolio of high-end grocery brands — Village Grocer, Ben’s Independent Grocer, BSC Fine Foods, OTK and The Food Merchant — under CP Axtra. The Malaysian retailer currently runs 50 stores nationwide.

Once the deal is completed, CP Axtra will operate more than 120 grocery outlets across Malaysia, combining The Food Purveyor’s network with the 70 stores run by Lotus Malaysia, the chain it took over after acquiring Tesco’s Malaysian business in 2020.

CP Axtra said the acquisition supports its strategy to expand in high-growth overseas markets while strengthening its position in the premium grocery segment.

Founded in 1988, CP Axtra is among Thailand’s largest wholesale and grocery conglomerates. The company operates more than 2,600 outlets across several markets, including Thailand, Malaysia, Cambodia, Vietnam, Singapore, Hong Kong, Oman and the United Arab Emirates.

The transaction is expected to close in the fourth quarter, pending regulatory approvals.