Wal-Mart expands in China

Wal-Mart has acquired a 35 per cent minority stake in Taiwan-based retailer Trust Mart. The price of the deal has not been disclosed, but analysts estimate Trust Mart’s market capitalisation in the range of one billion US dollar. Trust Mart operates over one hundred stores in 34 Chinese towns.

The acquisition – which has been rumoured for a longer period – has officially been announced by Wal-Mart. The American retail giant said it intends to take full control of Trust Mart in the future. Trust Mart’s Chinese operation is a huge asset for Wal-Mart who sees China as an important market for future growth. Currently Wal-Mart operates almost 70 stores in China, employing some 37,000 people and it’s Wal-Mart’s intention to rapidly grow its store numbers in the coming years, employing a further 150,000 people.