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Print 12 comment(s) - last by cressboy90.. on May 14 at 11:10 PM

Best Buy announced today that it has agreed to acquire a majority interest in Jiangsu Five Star Appliance, China’s #4 Electronics Retailer

Best Buy will invest $180M USD  to acquire a 51 percent stake in Jiangsu Five Star Appliance. "This transaction is consistent with the company's previously announced strategy for global expansion, and will provide us with an immediate retail presence in China through Five Star's 136 stores throughout eight of China's 34 provinces," Best Buy representatives said in a statement.

The transaction received the necessary Chinese Government approval, including a business license that was granted yesterday. The transaction is expected to close in June 2006, according to Best Buy. Five Star was founded in 1998 and has grown to more than 12,000 employees with its headquarters in Nanjing. Five Star’s $700M USD 2005 revenue reflects a 50 percent growth from the previous year.

Five Star’s stores will still operate under their current brand and Best Buy also plans to open up their First retail store in China later this year. This move from Best Buy also highlights the quickly changing Chinese landscape that has become the world’s fastest growing market.



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bestbuysux.org
By brshoemak on 5/13/2006 11:12:02 AM , Rating: 2
quote:
Best Buy also plans to open up their First retail store in China later this year


i hope bestbuysux.org will be able to handle the traffic of another 1+ billion unhappy customers :).

(btw, bot just a BB hater, i worked there, so i know it sucks from the inside out)




RE: bestbuysux.org
By igloo15 on 5/13/2006 12:13:21 PM , Rating: 2
I worked there too so I know what you mean.


RE: bestbuysux.org
By Samus on 5/13/2006 5:37:10 PM , Rating: 2
Assuming chinese customers are as stupid as Best Buy's current american consumers, well, they'll probably be successful forcing their policies and business model on 'whatchamacallit' five-star appliance ;)


RE: bestbuysux.org
By swatX on 5/13/2006 12:19:27 PM , Rating: 3
yes well my point is that foreign companies are buying stake at chinese industries which is better than chinese buying stake at foreign countries


BB
By cressboy90 on 5/14/2006 10:39:39 AM , Rating: 2
Just so everyone knows....It is not illegal for a foriegn company to purchase a chinese company...or a least a stake in it...the law in China actually is that the Chinese end of it has to own 51 percent of the company. I know this because I lived there...and currently live in Taiwan....and actually BB going into China is not such a bad thing....I worked at both BB and Circuit City for 3 years....you think they are bad...you should go to China.




RE: BB
By Vanderpool on 5/14/2006 10:56:23 AM , Rating: 2
You are wrong! In some industry, foreign capital is totally forbidden (such as military related), some has the limitation of "less than 50%"(railway, telecom, power station ...), but most of the industries are totally opened to foreign capital. In fact, in china, foreign captital evan has more freedom than private capital.

just FYI:
http://www.carlyle.com/eng/news/l5-news3233.html


RE: BB
By cressboy90 on 5/14/2006 11:10:55 PM , Rating: 2
Wrong in what respect...because you have not disproved anything I said. In China if you are a foriegn company or are an individual looking to start a company...in the beginning 51% must be owned by someone in China..while the foriegn invester can own upto 49%. I had a friend who had his own business. After the business is started things can change. I'd like to know what I'm wrong about...


nice!
By swatX on 5/13/2006 5:34:04 AM , Rating: 4
About time !

we need more American/european companies buying stakes at chinese industries.




...
By WileCoyote on 5/13/2006 11:21:53 AM , Rating: 2
And thus the destruction of China begins




RE: ...
By Vanderpool on 5/14/2006 5:49:36 AM , Rating: 2
hi, Boy, You should read more news.


Link?
By timmiser on 5/14/2006 3:55:07 AM , Rating: 2
Is there a link to this article?

I'm curious since the last time I checked, it is against Chinese law for a foreign company to purchase a Chinese company.




The news is half a years old
By Vanderpool on 5/14/2006 5:21:29 AM , Rating: 2
I have heard of this news half a years ago. The gov has already approved this purchase now.

The five star is the fourth biggest electronics retailer, and hard compete with others. So, it's not a problem to purcahsed by foreigners.


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