Text Version
RSS Feeds
Home Forum Photos Features Newsletter Archive Employment
About US Help Site Map
SEARCH   About US FAQ Site Map Site News
  -Text Version
  -RSS Feeds
  -News Archive
  -Give us feedback
  -Voices of Readers
  -Online community
  -China Biz info
  What's new
Hualian denies Wal-Mart bid report
+ -
08:23, July 23, 2007

 Related News
 Wal-Mart tops 2007 Fortune Global 500 list
 Comment  Tell A Friend
 Print Format  Save Article
Beijing Hualian, one of China's biggest retail groups, has denied a published report that it is in talks with hypermarket giant Wal-Mart on a possible takeover bid.

Britain's Daily Telegraph reported that Wal-Mart has asked advisers at investment bank Credit Suisse to draw up plans to buy all or part of the Beijing-based retailer.

The newspaper cited an anonymous inside source that said the two parties have held preliminary talks and both have been "looking hard" at the possible deal.

But Beijing Hualian's spokeswoman Li Yiping fimly denied the report. "We do not have such moves (underway with Wal-Mart)," she told China Daily.

Dong Yuguo, spokesman for Wal-Mart China said corporate policy does not allow him to comment on media reports or market speculation.

One expert said it is unlikely that Wal-Mart would seek local acquisitions at this stage. "It is too early for Wal-Mart to do so in China," said Wang Yao, deputy secretary-general of China General Chamber of Commerce.

Wang said the US firm is at the phase of laying a solid foundation in China, so developing on its own is the right strategy at the moment.

Wang also noted that management models for local retailers are very different from international giants like Wal-Mart, so mergers and acquisitions carry many potential risks.

Wal-Mart announced in February that it would acquire 35 percent of Taiwanese chain operator Bounteous Company Ltd (BCL), the owner of Trust-Mart. The deal also includes an option that allows the US company to possibly become the dominant shareholder under certain conditions.

Dong told China Daily that the partnership with Trust-Mart has gone smoothly. "Trust-Mart is a very good company. We have a lot to learn from each other."

BCL operates 101 hypermarkets in 34 Chinese cities, all still under the Trust-Mart name. Wal-Mart, which entered the Chinese market in 1996, now has over 70 stores in the country that employ more than 37,000 people

Beijing Hualian is partly owned by Beijing municipal government and has some of its shares listed in Shanghai. Analysts estimate the firm's value exceeds $1 billion.

The local company recently formed a 50-50 joint venture with Taiwan-based Shin Kong Mitsukoshi to open the luxury department store Shin Kong Place in Beijing's central business district.

Source: China Daily

  Your Message:   Most Commented:
Ambassador reviews Germany-China relations
President Hu vows to remain committed to "one country, two systems" principle
CPC full of vigor and vitality
Roadside bomb blast kills 26 people in SW Pakistan
Chinese leader urges college united front members to make more contribution

|About Peopledaily.com.cn | Advertise on site | Contact us | Site map | Job offer|
Copyright by People's Daily Online, All Rights Reserved