Watsons said the firm is qualified as an investor under the Retail Trade Liberalization Act (RTLA) by virtue of the "grandfather" rule and is therefore merely seeking confirmation from the Department of Trade and Industry (DTI) of its prequalification.
HWL has a net worth greater than the $200 million requirement for a foreign retailer and has the required track record and branch network through its sister company, A.S. Watson.
"In effect, the use of the grandfather rule would suffice for Watsons to abide by the requirements of the RTLA," the firm said.
HWL’s total networth as of Dec. 2000 stood at $31.814 billion. It is a listed company in Hong Kong with total assets worth $56.609 billion.
HWL through A. S. Watson has more than 1,000 retail stores globally. A.S. Watson, with over 550 personal care stores known as Watsons in Asia and over 220 personal care stores in the United Kingdom, is the main retailing and manufacturing arm of HWL.
Based on the December 2000 audited accounts of the Hutchinson Group, Watsons contributed approximately 32 percent to consolidated revenues of $10.875 billion and 3.4 percent to consolidated earnings before interest and taxes of $2.509 billion.
Watsons’ local subsidiary will be known as Watson Personal Care Stores Ltd which would enter into a joint venture agreement with the ShoeMart group in the operation of drug stores and health and beauty stores in the Philippines.
HWL will be the majority partner with 60 percent, while the SM Group will own 40 percent of the joint venture company to be known as the Philippines Health and Beauty Stores and Drug Stores.