Convenience Retail Asia, a member of the Li & Fung Retailing Group, has announced that the company will acquire an additional 25% equity interest of Convenience Retail Southern China for CNY15 million, increasing its holdings of Convenience Retail Southern China from the current 73.5% to 98.5%.
Convenience Retail Southern China is mainly engaged in the management of the convenience store brand Circle K in China's Guangdong province. Commenting on this acquisition, a Convenience Retail Asia representative said it could further raise its management efficiency and it could gain more freedom while making expansion and management strategies on its convenience store business in Guangdong.
Before the announcement of this acquisition, reports from local media said that the over ten Circle K convenience stores in Dongguan, Guangdong were suspended and the brand might withdraw from the Dongguan market. In regards to these reports, a person in charge of public relations of Circle K's Guangzhou headquarters told local media that the suspension of these stores was only a store-level adjustment, which is an ongoing business strategy of the company.
As one of the largest convenience store chains in the world, Circle K has extended its business to Hong Kong, Macau, Taiwan, Guangzhou, Dongguan, Shenzhen in China as well as the United States and Japan. Convenience Retail Asia has the exclusive right to use the Circle K brand name for convenience retailing in Hong Kong, Macau, Southern, Eastern and Northern Chinese Mainland.