SHANGHAI (AFP) – Chinese retail chain Suning Appliance Co said it planned to buy a stake in struggling Japanese consumer electronics retailer Laox for 800 million yen (8.4 million dollars).
Suning will buy 66.7 million shares in Laox at 12 yen each, giving it a 27.36 percent stake that would make it Laox's largest shareholder, the Chinese firm said in a statement filed to the Shenzhen Stock Exchange.
Suning said it has reached "basic consensus" with Laox on the purchase, but a formal agreement has yet to signed.
Suning, China's second-largest home appliance chain, said the deal was part of its long-term strategy and exposure to Japan's electronics retail market would help it be more competitive in areas like pricing and customer service.
"The planned investment in Laox will give the company more knowledge about the international home appliance market and provide a platform to draw on advanced experience of an international home appliance retailer," it said.
Suning, founded in 1990, added that it planned to help revitalise Laox stores and the two companies would share buying operations to negotiate lower prices.
Laox, established in 1930, made a net loss of 12.6 billion yen in the financial year ending March 31.
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