Suning Electronics says that it has decided to cease the acquisition of Dazhong because the two sides have failed to reach an agreement on some core issues.
Suning says that in consideration of the costs and risks involved, they can't reach an agreement with Dazhong on some core issues, which local analysts believe mainly refers to the RMB3 billion price offered by Suning.
Chinese media previously reported that Suning would acquire Dazhong for RMB3 billion, a move that is believed to reshuffle China's home appliance retail industry. Chinese analysts believe that the end of the acquisition may just mean a slowdown of Suning's expansion in the Beijing market and it won't affect the company's overall business in China.
By the end of September this year, Suning had 453 chain stores in 106 cities in China, with a total of 1.80 million square meters of business space.