Lianhua to pull out of discount jv with Carrefour
Lianhua Supermarket Holdings is considering pulling out of its discount joint venture with French retailer Carrefour. The joint venture Shanghai Dia Lianhua, which operates 120 discount stores in the Shanghai area, is loss making to such an extent that the losses exceed Lianhua Supermarket’s investment. Lianhua holds a 45 per cent stake in the joint venture.
Lianhua’s executive director Liang Wei confirmed his company’s intention to sell its stake in the joint venture to the Hongkong newspaper South China Morning Post. This has however been already in the Chinese press since late July. Before the end of the year, a final decision will be taken, said Liang Wei, who also said that Lianhua will retain its 45 per cent stake in a separate hypermarket joint venture with Carrefour, that has nine outlets in Shanghai.
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