Wal-Mart buys 35% of retailer
By Diao Ying (China Daily)Updated: 2007-02-28 09:47 Wal-Mart Stores Inc has sealed a deal to purchase a 35 percent interest in the parent company of Trust-Mart, a leading hypermarket operator in China, a step forward for the world's largest retailer to expand its reach in the country.
The US retail giant may also acquire ownership of Bounteous Co, operator of 101 Trust-Mart stores in 34 cities in China, the company said in a statement.
The possible acquisition will enable Wal-Mart to beat its French opponent Carrefour, and build the largest hypermarket network in China.
No details were released, but previous reports citing a person close to the deal said the company planned to acquire Trust-Mart in an agreement valued at $1 billion.
The expansion shows that Wal-Mart sees China as an important place to bolster its international revenues after it pulled back from loss-making operations in South Korea and Germany last year. Its sales growth at home in the US has been slow for years.
"Through this investment in Trust-Mart we have the opportunity to expand our
presence in China, one of the world's fastest growing retail markets," said
Wal-Mart Vice-Chairman Michael Duke.
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