Gome seals China Paradise takeover deal
By Wang Xu (China Daily)
Updated: 2006-07-26 08:36 Huang will own 51.2 per cent of the new company while Chen will hold a 12.5
per cent stake.
China Paradise will continue to operate its Yolo brand
after the deal, but the new company will consider combining some of the stores
in the same areas in order to increase efficiency and reduce price battles,
company officials said.
The move will create a retail giant with about
US$8 billion in sales and a tenth of the Chinese consumer electronics market,
which is luring an increasing number of foreign giants with deep
pockets.
The US-based Best Buy Inc, the biggest consumer electronics
chain in the United States, spent US$180 million to acquire fourth-ranked
Jiangsu Five Star Appliance in May. And it opened its first mainland store in
Shanghai last month.
"The deal will help us to strengthen our leading
position in China's consumer electronics market and further expand our presence
in the nation," said Huang.
The deal will enable Gome to tap into the
lucrative Shanghai region market. Shanghai-based China Paradise now has 60 per
cent of the market in the nation's economic hub.
"The deal with Gome will
not affect China Paradise's acquisition of Dazhong, which will be carried out
later," said Chen.
(For more biz stories, please visit Industry Updates)
|
