Lianhua Supermarket, a subsidiary of the Bailian Group, has announced that it will acquire a 100% stake in Hualian Supermarket from Bailian Group for CNY492 million.
With the implementation of the acquisition, Hualian experiences major executive changes. According to a report published by the company, Hua Guoping, the former general manager for Bailian's supermarket business department, has been appointed general manager for the new Lianhua Supermarket, and Liang Wei, the former general manager of Lianhua Supermarket, has been appointed executive deputy general manager.
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.
According to Ma Xinsheng, the chairman of Bailian Group and Lianhua Supermarket, after buying Hualian Supermarket the group will consolidate store business through resource integration and will accelerate expansion to the second and third-tier markets in the Yangtze River Delta with the dual-brand market strategy.
Hualian Supermarket's aggregated assets had reached RMB 257.5 million at the end of 2008, according to an audit based on Chinese Accounting Standards (CAS). The company generated nearly RMB 3 billion in operating revenue last year.