According to a public notice issued by Lianhua Supermarket, the acquisition of Hualian Supermarket has been completed. Hualian Supermarket will become subsidiaries of Lianhua Supermarket. At this point, since Bailian抯 emerge in 2003, who has showed concerns the acquisition, the merger was finally settled.
Bailian Group's Hong Kong-listed Lianhua Supermarket (0980.HK) announced on 29th June 2009 that the company with its subsidiaries, Shanghai Lianhua Supermarket Development Co., Ltd., signed an agreement with Bailian home buyers with the Brilliance Group Co., Ltd. with a total price about 492 million Yuan acquisition of full ownership Hualian Supermarket. After the acquisition, the total number of Lianhua Supermarket's stores will reach 5268, which marked super-stores reached to 3184.
According to the analysis, this acquisition will make Lianhua Supermarket in the Yangtze River Delta region, especially in the Shanghai region further expand its market share, and its supermarket format in the Shanghai market will have a dominant market position. In addition, after the successful acquisition of Hualian Supermarket, the company's operating scale and the scale of procurement will be further expanded, thus enhancing the operating scale advantages as well as suppliers negotiating leverage. Franchise is an advantage of Hualian supermarket. After the acquisition, the level of its franchise will be further enhanced and the franchise scale in Zhejiang and Jiangsu provinces will also be further improved. |
