The Nation

business

Smaller
Larger
China's retail sector

CP Lotus fails to sell outlets to Wumart

China's supermarket chain Wumart Stores Monday cancelled the deal to buy 36 outlets from CP Lotus, a partially-owned business unit of Thailand's billionaire Dhanin Chearvanont.



Under the deal announced in October, Wumart planned to buy a roughly 10 per cent stake in CP Lotus for HK$547.9 million, while CP Lotus planned to buy a nearly 14 per cent stake in Wumart for HK$2.89 billion. Under this deal, Wumart would gain control of 36 stores of CP Lotus.

According Wall Street Journal, the failed deal would have consolidated China’s fragmented retail grocery market. Wumart has a 1.8 per cent share of hypermarket sales in China and a 0.3 per cent share of supermarket sales, according to market-research firm Euromonitor International. Hypermarkets are large stores that sell household goods and clothing in addition to food. Top hypermarket Sun Art Retail Group Ltd. 6808.HK holds a 14 per cent market share, while leading supermarket operator China Resources holds a 2 per cent share, according to Euromonitor.


Comments conditions

Users are solely responsible for their comments.We reserve the right to remove any comment and revoke posting rights for any reason withou prior notice.