CHINA: China Resources eyes retail expansion
China Resources Vanguard Supermarket, a retail unit of China Resources Enterprise, has reportedly entered into negotiations to take a stake in a supermarket chain joint venture between Wal-Mart and Shenzhen International Trust Investment.
Wal-Mart has a 65% stake in the supermarket chain, worth US$185m, while Shenzhen International holds the remaining 35%.
Citing sources close to the deal, the Shanghai Securities News reported that China Resources Vanguard may acquire the equity interest held by Shenzhen International.
No further details were provided.
In 2004, China Resources expanded into the retail sector when it purchased an 85% stake in the Jiangsu-based Suguo supermarket chain. At the end of last year, CR Vanguard and CR Suguo had more than 2,100 outlets with combined sales of CNY30.14bn (US$3.77bn), according to the paper.
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