Lianhua Supermarket has reported that its board of directors has approved the acquisition of Hualian Supermarket for CNY492 million.
The report stated that 99.43% of Lianhua's shareholders voted for the acquisition. On the completion of the acquisition, Hualian Supermarket will become a subsidiary of Lianhua Supermarket and the number of Lianhua Supermarket outlets will be increased to 5,268, including 3,184 standard supermarkets.
Hua Guoping, the general manager of Lianhua Supermarket, told local media that the company has already worked out a plan for the merger. A dual-brand strategy will accelerate its nationwide development of the new Lianhua Supermarket through direct operation, franchising, and joint restructuring.