Published on 02 May 2015

Kingfisher sells controlling stake in B&Q China

B&Q China opened its first store in the country 15 years ago and now has 39 outlets employing 3,000 staff.

Kingfisher plc announced a binding agreement to sell a controlling 70% stake in its B&Q China business to Wumei Holdings Group for a total cash consideration of £140 million. This agreement followed Kingfisher's previous announcement of its plans to look for a strategic partner to help develop its B&Q business in China. 

Kingfisher will account for its remaining 30% interest as an investment. Adjusted measures for 2015/16 and 2014/15 will exclude B&Q China's operating results.

Wumart operates some 650 supermarkets and 10 department stores, and owns brands such as Wumart, Jingbei Shopping Mall, and Merrymart. The deal, conditional on Chinese Ministry of Commerce approval, is expected to close during the first half of 2015.

Kingfisher entered China in 1999 and expanded rapidly to capitalise on a housing boom. But while the spending power of China’s middle class has surged in recent years, the DIY trend never took off in a nation where labour is cheap.

Kingfisher made retail losses of £4m in China in the 13 weeks to November 1 as sales declined 10.6 per cent to £97m. The struggling business, which currently comprises 39 stores and employs 3,000 staff, was also hit by a slowdown in the Chinese property market.

 


“I am delighted to have found a strong retail partner who will help us to release the financial value of our business in China, said Véronique Laury”

Source: http://www.kingfisher.com/index.asp?pageid=55&newsid=1093

About us

Garden Europe is one of the leading European Garden business Web site. Our mission is to be one of the primary sources of information about garden events, products, best practices, social media, trade shows and the latest garden trends.

Garden Europe is a platform to inspire Garden members providing information, ideas and solutions for profitable business.

© Copyright bohero bvba.  Privacy Policy  |  Terms of use  |  Disclaimer  |  Cookies  |  Website by Webatvantage

This website uses cookies! For more information regarding our cookies, please read our cookie policy