Hong Kong, Aug 22: Hong Kong-based conglomerate Hutchison Whampoa said today it intends to buy Dutch-based pharmaceutical retail chain giant Kruidvat group for 1.27 billion US dollars. Hutchison said its pharmacy chain A S Watsons would take over Kruidvat, which has 1,900 stores and employs 24,000 workers in six European countries. In a statement, Hutchison said the combined sales of the A S Watsons group and the Kruidvat group would exceed seven billion Euros in 2002.

The acquisition offered opportunities for synergies across Europe and Asia, Hutchison group managing director canning Fok said. Hutchison also announced a 17.1 percent fall in interim net profit to 5.95 billion hong kong dollars (764 million us) partly due to a smaller contribution from unit husky energy.

This compared with a net profit of 7.18 billion dollars a year earlier and analysts' forecasts of 4.69-5.04 billion dollars.

The company, controlled by Asia's wealthiest tycoon Li Ka-Shing, said sales in the six months to June rose 7.4 percent to $ 46.59 billion.

Hutchison, the world's largest port operator, said an improved performance from its port operations had helped offset a smaller contribution from husky energy. The firm said it also wrote back $ 395 million Hong Kong (50.71 million US) in provisions for manufacturing unit Hutchison Harbour Ring.

Bureau Report