Wal-Mart Suspends Merger Of Trust-Mart In China
Source: http://www.chinaretailnews.com/2009/11/05/3118-wal-mart-suspends-merger-of-trust-mart-in-china/Posted on Wednesday, November 4th, 2009 | In China, Investing Lessons, Taiwan
According to reports in local media, Wal-Mart has suspended the merger of Trust-Mart stores in China.
Though Wal-Mart gave no comment to the suspension of the merger, an insider revealed that Wal-Mart previously invested tens of millions in the renovation of Trust-Mart’s three outlets in Shenzhen and Guangzhou, but the performance of these stores decreased by nearly 30% after the renovation. In addition, several Trust-Mart executives departed from the company during the three-year merger period. These results have made Wal-Mart re-consider its merge project and suspend it temporarily.
In February 2007, Wal-Mart invested USD264 million in acquiring a 35% stake in Taiwan-based Bounteous Company Ltd., the operator of Trust-Mart in China. According to the agreement signed by the two parties, Wal-Mart promised to buy the remaining Trust-Mart stock in February 2010 for USD320 million on the condition that Wal-Mart can complete its renovation of Trust-Mart’s outlets. Otherwise, Wal-Mart will not need to complete its full acquisition of Trust-Mart in China.
Last 5 posts by China Retail News
- Japan's Shiseido Eyes 20% Growth In China - November 19th, 2009
- Tesco To Set Up Joint Venture In China - November 18th, 2009
- Lotte Mart Opens Its First Hypermarket In Beijing - November 17th, 2009
- China Resources Enterprises To Acquire 75 Home World Hypermarkets - November 16th, 2009
- China's Retail Sales Up 16.2% In October 2009 - November 15th, 2009
 About China Retail News (http://ChinaRetailNews.com)
China's a big place, and the large amount of information it takes to run a successful retail business in the Middle Kingdom just can't be processed by mortal souls. With what potential partners should you work? How can you hire staff? What do you do when someone in your business is caught doing something illegal? How can you gain favor by helping to support charities and socially responsible organizations in China? How can you best enable your staff to tackle the global challenges of running a multinational business? What are the latest retail sector laws in China? ChinaRetailNews.com provides news and information devoted to helping retail professionals in all sectors act on new trends and forge new paths of their own. We troll press releases, commentaries, and indices to bring you the sort of information you need to conduct business in Beijing, Shanghai, Guangzhou or out in China's hinterlands. In April 2007, ChinaFranchiser.com merged with ChinaRetailNews.com to provide even more targeted daily news covering all of China's different retail and franchise sectors. ChinaRetailNews.com is an online publication of BDL Media Ltd, a company operating in China for nearly a decade. |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.