The Financial Times reports that France-based retailer Carrefour has sold 80 percent of its China business to Suning.com, described as “a Chinese retailer with more than 8,881 stores in more than 700 cities.”
The cash deal is said to be worth more than $700 million, and includes a provision that allows Carrefour to sell the 20 percent of the business that it still owns during “several liquidity windows.”
The FT story says that “Carrefour entered the Chinese market in 1995 and operates a network of 210 hypermarkets and 24 convenience stores in the country,” but the business has remained “troubled,” and Carrefour has been looking for the exit door.
The cash deal is said to be worth more than $700 million, and includes a provision that allows Carrefour to sell the 20 percent of the business that it still owns during “several liquidity windows.”
The FT story says that “Carrefour entered the Chinese market in 1995 and operates a network of 210 hypermarkets and 24 convenience stores in the country,” but the business has remained “troubled,” and Carrefour has been looking for the exit door.
- KC's View:
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Carrefour has been adjusting its business model as it adapts to tougher competition from online retailers and discounters. This means fewer hypermarkets and more c-stores and online offerings … and, apparently, less of a global footprint.
How the world has changed.
