Wal-Mart to Buy Chinese Retail Chain [Business Week]
Summary: The Asian Wall Street Journal reported Wal-Mart plans to spend $1 billion to buy 100 privately held hypermarkets (combined supermarket and department store in one facility) in China over the next three years, according to people familiar with the transaction. Wal-Mart reportedly outbid rival Carrefour of France, and as a result will overtake the latter to become China's largest hypermarket operator. A Wal-Mart China spokesman declined to comment. This move comes after having ended its retail operations in Germany and South Korea earlier this year. Wal-Mart is still trying to grow its business in Japan. Note the Financial Times reports that although Wal-Mart emerged as the leading bidder for the hypermarkets, an agreement has yet to be reached.
Related links: Wal-Mart's Same-Store-Sales Weak Compared to Rivals • Wal-Mart Finding it Harder to Expand • Wal-Mart to Offer Credit Cards in China • China to Foreign Companies: Be Good or Face Unionization • Wal-Mart Comments on Sale of South Korean and German Stores • Conference call transcript: Wal-Mart Q2 2007
Potentially impacted stocks and ETFs: Wal-Mart (NYSE:WMT)
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