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Suning.com gets green light to buy Carrefour China

By Liu Yukun | chinadaily.com.cn | Updated: 2019-08-27 16:41
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A logo of Suning.com, Jan 5, 2019. [Photo/VCG]

China's State Administration for Market Regulation gave the green light to Suning.com on Monday to acquire Carrefour China Holdings NV, according to a statement today from Suning.

Earlier on June 23, home appliances retailer Suning announced it was buying an 80 percent stake in French supermarket giant Carrefour China in an all-cash deal worth 4.8 billion yuan ($670 million).

A report from China International Capital Corp Ltd said the acquisition marks a new step for Suning to develop its offline retail business and smart-retailing.

Tian Rui, vice-president of Suning, said in an earlier interview that the acquisition benefits the two companies in a way that they can leverage their resources for a synergistic effect.

"Carrefour's strengths in supply chain, offline operations and brand management, together with Suning's logistics network and technologies, will further streamline our online-to-office retail layout and reduce costs in sourcing and logistics," Tian said.

The acquisition came after Suning's acquisition of 37 Wanda department stores earlier this year.

Carrefour follows other foreign retailers' retreat from China's market, such as Tesco Plc and Walmart Inc. Reuters said German wholesaler Metro AG is also looking to sell its Chinese branch.

Industry analysts said foreign retailers have been facing fierce competition with domestic rivals and mounting pressure facing China's growing online market.

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