Wal-Mart to buy 35% of China’s Trust-Mart
28 February 2007
Wal-Mart will pay about US$1 billion for 35% of the company
that owns China's
Trust-Mart hypermarket chain, the Financial Times reported, citing sources
familiar with the sale. If the US
retailer goes on to take full control of Bounteous, parent company of Trust-Mart,
it would become China's
largest hypermarket operator. There are 101 Trust-Mart stores in China across 34
cities but the group has struggled in recent years due to intense competition. Only
half the money is expected to be paid up front, with the rest coming in
installments over three years, depending on improvements at 65 Trust-Mart
stores. Wal-Mart has 68 hypermakets in China but is keen to expand,
passing rival Carrefour which currently has 90 of the large format stores.