Best Buy acquires China’s Five Star Appliance

Best Buy acquires China’s Five Star Appliance

The largest US based electronics retailer Best Buy has announced that they are investing around $180 million for majority stake in the China’s Five Star Appliance.

This deal would give them a head start into the world’s most populous country. The company would get access to around 136 stores in eight provinces in china.

They are not alone to target the ever-growing Chinese market. Wal-Mart Stores Inc. and Carrefour SA are already working on their expansion plans in this market. Five Star along with Best Buy would be able to compete better against local giants like Gome Electrical Appliances Holdings.

Best Buy also has plans to open its own stores in China this year. They are going to open up an 8,000-square-meter (86,000-square-feet) shop in Shanghai.