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
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.