SM Investments Corp. of taipan Henry Sy Sr. will absorb its supermarket and hypermarket businesses through a share swap deal valued at roughly P12.5-P13 billion.

SMIC executive vice-president Jose Sio said in a disclosure to the Philippine Stock Exchange yesterday that SMIC has agreed to transfer 56 million shares, representing around 9.6 percent of its expanded capital stock, to supermarket chain Supervalue Inc. (SM Supermarkets) and hypermarket operator Super Shopping Markets Inc. (SM Hypermarket).

In return, SMIC will get 100 percent of SM Supermarkets and 81 percent of SM Hypermarkets is held by SM Supermarkets.

SMIC acquired these key retail formats to boost the value of its shares and expand retail revenues.

Once folded into SMIC, these retail operations are expected to contribute P1.1 billion in additional income to the holding firm.

A hypermarket refers to retail outlets around 10,000 square meters in floor size that combine a wet market, supermarket and discount store.

The SM Group runs five hypermarkets in Metro Manila and one each in Marilao, Bulacan, and Molino Cavite.

SM Plans to open at least four more hypermarkets this year, at Mall of Asia along the Manila Bay area, SM Clark in Pampanga, Frontera Verde along  C5 near the Teindesitas market, and at North Edsa beside SM City.

A supermarket, on the other hand, are smaller outlets with an average floor space of 8,000 square meters.

The SM Group currently operates 25 supermarkets and will open two to three more this year.

SMIC was earlier in talks with the Fung Family of United Supermarket Group for the latter to buy its shares in the supermarket and hypermarket businesses.

Aside from retail, SMIC has interests in banking and financial services, real estate development and tourism.