Philippines’ multi-format retailer Robinsons Retail Holdings (RRHI) has entered into a $344m share-swap agreement with Hong Kong’s retailer Dairy Farm International Holdings to acquire Rustan Supercenters .

As part of the agreement, which was disclosed to The Philippine Stock Exchange (PSE ), RRHI will gain 100% stake in Dairy Farm subsidiary Mulgrave Corporation BV in Rustan’s Supercenters (RSCI).

Meanwhile Mulgrave will own 18.25% stake in RRHI in return.

The partnership with Dairy Farm is a part of RRHI’s plans to ‘build a leading food retail business’.

In its disclosure to the stock exchange, RRHI stated: “Leveraging the combined strengths of RRHI and RSCI will lead to benefits to customers in terms of even better service, quality and value.”

“The partnership with Dairy Farm is a part of RRHI’s plans to ‘build a leading food retail business’.”

The agreement covers Rustan’s food retail brands; Marketplace by Rustan’s, Rustan’s Supermarket, Shopwise Hypermarket, Shopwise Express and Wellcome .

The deal will be presented for approval to RRHI’s shareholders on 28 May. It will also be submitted to the Philippine Competition Commission and the Securities and Exchange Commission for approval.

In 2012, Dairy Farm, a subsidiary of Jardine Matheson , acquired a 50% stake in Rustan’s Supercenters in 2012, increasing this by 16% couple years later, and then the remaining 44% in July 2017.

As of end of 2017, RRHI operates 154 supermarkets. Including other retailing formats, RRHI has a total of 1,718 stores and 2,015 franchised stores of The Generics Pharmacy (TGP ).

Dairy Farm operates over 7,100 outlets including supermarkets, health and beauty stores, convenience stores, hypermarkets, and restaurants.