Suning May Acquire Dazhong For RMB3 Billion

According to 163.com, Chinese electronics retailer Suning will acquire its competitor Dazhong for RMB3 billion.

Suning has reportedly completed the audits surrounding Dazhong's profit-making capabilities and has cleared the account of each of Dazhong's functional departments. According to people who have close contact with the parties, in the first two years after the acquisition, Suning will allow Dazhong to run on its own and retain its own logo, but it has begun to make preparations for a united outsourcing and unified service and begun to connect the financial management systems of the two companies.

Dazhong currently owns 63 stores in Beijing, accounting for about 50% of Beijing's electronics retail market. So far no formal agreement has been signed between the parties regarding the acquisition.

The report says that after the acquisition, Zhang Dazhong, president of Dazhong Electronics will no longer engage in home appliance retailing and instead he will go into the real estate business.