Best Buy Co., Inc. (Minneapolis, Minnesota, U.S.) will acquire a majority interest in Jiangsu Five Star Appliance Co., Ltd., China’s fourth-largest appliance and consumer electronics retailer. The acquisition gives Best Buy an immediate retail presence through Five Star’s 136 stores in eight of China’s 34 provinces.
Leveraging the experience of Five Star’s management team - including Chairman Wang Jian Guo, a native of Jiangsu province - Best Buy intends to accelerate its understanding of customers and retailing in China, which it sees as the world's fastest-growing market.
“We have a high regard for Mr. Wang and the culture he helped establish at Five Star. His entrepreneurship and leadership will be critical as we further develop our relationships and presence in China,” said Weimin Lu, chairman and general manager of Best Buy China.
The acquisition received Chinese government regulatory approvals and the transaction is expected to close in June. The acquisition comes a month after Best Buy announced its first Best Buy store in China, in Shanghai. “In addition to our new work with Five Star, we are moving forward with our plans to open our first Best Buy retail store in China this year," Robert Willett, CEO of Best Buy International.
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