Centaline Property Agency has acquired competitor Ricacorp Properties to become the largest property agency in Hong Kong.
The acquisition enables Centaline to expand its retail agency network to 234 outlets, controlling more than one-third of the local property-brokerage market.
The trend for mergers and acquisitions in this segment of the property market, caused in part by sluggish market conditions, has sparked fears small firms will find it difficult to survive.
Last year, Midland Realty acquired Hong Kong Property Services (Agency). The group now has 189 retail branches including 23 outlets operated under Hong Kong Property.
Centaline yesterday announced its acquisition of more than 50 per cent in Ricacorp Properties - the SAR's third-largest agency in terms of retail networks - and undertook to inject new capital into the merged group.
Centaline has 160 branches and Ricacorp 74 branches.
Centaline managing director Shih Wing-ching said the company would retain Ricacorp's management and business set-up as Ricacorp's goodwill was valuable. He said there were no plans to lay off staff.