Gome snaps up rival
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China’s largest electrical equipment retailer Gome has purchased rival Beijing Dahong House Home equipment.
Gome paid three.83 billion yuan US$617 million for the chain, which it has successfully managed for the final eight years since pumping mortgage finance into the enterprise.
The seller was Beijing Zhansheng Funding Co, with the cost a mix of money and debt forgiveness of a three.6 billion yuan mortgage.
Gome stated in a press release filed with the Hong Kong inventory trade that phrases of the mortgage included an choice to purchase the enterprise sooner or later. It had now determined to train that curiosity.
It isn’t but clear if Gome will rebrand the shops it has acquired underneath its personal branding or function a twin model technique.
Questions & Answers
Q.What was the total value of the acquisition by Gome?
What was the total value of the acquisition by Gome?
Gome paid 3.83 billion yuan, equivalent to US$617 million, for Beijing Dahong House Home equipment. This amount was a combination of cash and debt forgiveness for a previous loan.
Q.Who was the seller of Beijing Dahong House Home equipment?
Who was the seller of Beijing Dahong House Home equipment?
The seller in this transaction was Beijing Zhansheng Funding Co. Gome's payment included the forgiveness of a 3.6 billion yuan mortgage that Beijing Zhansheng had on the acquired company.
Q.How long has Gome been involved with Beijing Dahong House Home equipment prior to this purchase?
How long has Gome been involved with Beijing Dahong House Home equipment prior to this purchase?
Gome has successfully managed Beijing Dahong House Home equipment for the last eight years. This began after Gome provided mortgage finance to the business, which included an option to buy it.
Q.Will Gome rebrand the newly acquired stores?
Will Gome rebrand the newly acquired stores?
It is not yet clear whether Gome will rebrand the acquired stores under its own name. The company may also choose to operate a dual brand strategy for the outlets.
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