Gome snaps up rival

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.