German retail giant Metro has announced that its electronics sales subsidiary Media Markt will establish a joint venture with Taiwan-based Hon Hai Precision Industry for an electronics retail operation in mainland China.
The two companies plan to open the first Media Markt in Shanghai before the end of 2010 and they plan to develop over 100 outlets in mainland China in the next five years. With the opening of the Shanghai Media Markt store, China will become the 17th overseas marketplace for Media Markt.
Media Markt and Hon Hai reportedly signed an agreement at the end of 2009 for the establishment of the joint venture, in which Metro owns a 75% stake and Hon Hai owns the remaining 25%.
Dr. Eckhard Cordes, the CEO of Metro, said that China is a market that is full of opportunities and of strategic importance. With the entry of Media Markt, consumers in China will gain access to its innovative products.