Asia's leading retail group Dairy Farm International Holdings Ltd announced plans to acquire a 20% stake in Yonghui, a Chinese supermarket chain, for CNY5.69 billion.
Graham Allan, chief executive officer of Dairy Farm, said in a statement that Dairy Farm has been seeking opportunities to participate in this large and fast-growing Chinese market. The strategic cooperation with Yonghui provides an attractive channel to realize its target.
Founded in 1886, Dairy Farm currently operates over 5,800 supermarkets, health and beauty stores, and other retail stores across Asia. According to Bloomberg, this transaction will be the largest acquisition in the history of Dairy Farm. Meanwhile, the company will cooperate with Yonghui in other sectors, including procurement, fresh food processing, and outlet development.
Statistics from the market research firm Euromonitor International show that Fujian-headquartered Yonghui is the fifth largest supermarket group in China. At present, the company runs 288 stores in 17 provinces and cities in mainland China.