T

he business empire of tycoon Chairul Tanjung has expanded its reach by acquiring full ownership in the local unit of French-based retailer Carrefour in a US$750 million transaction.

Chairul’s retail business operator, PT Trans Retail, completed the deal on Monday, less than two years after the company first purchased a 40 percent stake in the Indonesian unit in April 2010.

Funds for the remaining shares were raised entirely by a syndicated loan involving 10 foreign banks that must be fully repaid in three years, signaling solid confidence in retail growth.

“We hope that [Carrefour Indonesia’s] performance will increase rapidly so that Trans Retail will have the money to repay the loans. There is also possibility to repay the loans by issuing bonds or by taking the company public,” Chairul said in at a press conference on Tuesday.

Following the takeover, the retail business will be rebranded as Trans Carrefour.

“We have the right to use the [Carrefour] brand for five years. We have decided to use Trans Carrefour. As time goes by, the word ‘Trans’ will be bigger and ‘Carrefour’ will diminish,” Chairul, whose businesses include retail, media, banking and airline companies, said.

Chairul said that he expected that Carrefour Indonesia would post 30 percent annual business growth starting next year, which would be up from a previous rate of around 10 percent. The company’s turnover reached $1.3 billion last year.

Andrew Argado, a research analyst from eTrading Securities, said that booking 30 percent growth in retail would be difficult. “That is a very aggressive target. Retail business’ growth is usually around 15 to 20 percent,” Andrew said.

Carrefour’s Indonesia exit is part of the retail giant’s strategy to focus on traditional markets in Europe and China. Carrefour SA recently announced the sale of its Malaysian operation to Japan’s Aeon for €250 million ($320 million). The retail giant also in October sold its business in Colombia to the Chilean group Cencosud for 2 billion.

Despite recording rapid retail growth, Indonesia continues to provide plenty of room for growth for modern retailers. According to McKinsey & Co., modern retailers comprise only 5 percent of the nation’s retail market, a much smaller percentage than in other emerging markets, such as China, with 68 percent; Malaysia, at 42 percent; and Thailand at 37 percent.

Chairul, born on June 16, 1962, is a self-made man who became Indonesia’s 11th richest man, according to Forbes. He founded the Para Group in 1987 and renamed the holding company to CT Corp. last year.

CT Corp. has three subholdings: Mega Corp., running financial businesses; Trans Corp., running media, lifestyle, entertainment and retail businesses; and CT Global Resources, which is engaged in the plantation business.

Chairul paid a reported $70 million for the nation’s biggest online media outfit, detik.com, in August 2011.

In April, Chairul’s PT Trans Airways acquired 10.9 percent stake in national flag carrier PT Garuda Indonesia.