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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