Wumart takes over Zhejiang Gongxiao Supermarket
Beijing-based Wumart Stores Inc. have bought a 85% stake in Shaoxing Commerce and Supermarket Investment Co. for €15.6 million. After the acquisition, Wumart Stores will have a 54.09% stake in Zhejiang Gongxiao Supermarket Co., Ltd. indirectly, becoming a controlling shareholder of the Zhejiang chain retailer.
Zhejiang Gongxiao has launched more than 1,700 rural outlets in 25 counties. The company has gained operating revenue of €32 million and after-tax net profits of €1.4 million in the first half of 2008.
Fu Yu, chief PR officer of Wumart, says the company plans to continue extending its reach in Eastern China by adding four more stores in Hangzhou and Huzhou.
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