According to reports in Chinese local media, Suning Xiaodian, the convenience store chain owned by Suning, and Fung Retailing reached an equity transfer agreement, under which Suning Xiaodian will buy more than 60 Circle K convenience stores in Guangzhou.
On the completion of the acquisition, Suning Xiaodian will hold a 100% stake in the Circle K convenience store brand and all Guangzhou stores of Liya South China, a subsidiary of Fung Retailing.
Based on official statistics, Suning currently has nearly 6,000 Suning Xiaodian outlets and Dia direct stores, covering over 70 cities, 35,000 communities, and nearly 120 million consumers.
Commenting on the acquisition, president of Suning fast consumer group Bian Nong said that the company values the Liya South China team and its experience and accumulation in product operation, supply chain, and regional distribution sectors. The acquisition could enhance Suning Xiaodian's layout in Guangzhou and help it expand in South China.
Circle K was established in the U.S. in 1951 and Hong Kong's Fung Retailing gained its exclusive operation rights in Hong Kong and mainland China in 1985 and 2000, respectively. At present, Circle K has over 60 stores in Guangzhou and it mainly provides packaged beverage, snacks, dairy products, and fashion products.
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