Wumart Stores to acquire CP Lotus supermarkets in China for $387 mn
15 Oct 2013
Chinese supermarket operator Wumart Stores will acquire most of the CP Lotus chain of supermarkets in China from Thailand's richest man, Dhanin Chearavanont, in a deal worth more than HK$3 billion ($387 million).
The Lotus chain is run by the Charoen Pokphand Group, owned by Chearavanont.
Lotus has one of the largest foreign invesments in a supermarket chain. It has 57 stores and 7 distribution centres in 30 cities of 14 provinces and Chinese municipalities, including Shanghai, Guangzhou, Beijing, Xi'an, Wuhan and Qingdao.
Post deal, Wumart will own all the Lotus supermarkets except some in Guangdong province, which will continue to operate under the Lotus brand.
Lotus reported a loss of 392 million yuan in 2012 due to stiff competition and a slowdown in the Chinese economy.
Founded in 1994, Beijing-based Wumart has a network of 541 stores with 145 superstores and 396 mini-marts.
Most of its stores are located primarily in the Chinese cities of Beijing, Tianjin and the cities of Hebei province.
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