US electronic goods retailer Best Buy has bought a further 20% of Jiangsu Five Star as it seeks to expand in second and third-tier cities, the South China Morning Post reported. The company, which bought 50% of the 136-branch domestic retailer for US$180 million last year, refused to confirm the deal. Best Buy China Chairman Lu Weimin only said that the company had a controlling stake in Five Star and would look to add 23 stores to its network this year. However, he did not rule out also opening Best Buy stores in the second- and third-tier cities Five Star is targeting. Lu refuted speculation that Best Buy is in talks to buy Beijing Dazhong Electronics. Suning, the country's second-largest electronics retailer, said last week that it was in negotiations with Dazhong. The deal could be complicated by a pre-existing merger arrangement between Dazhong and fellow retailer China Paradise. Paradise was taken over by Gome before anything could be finalized but Gome is demanding the return of a US$19.4 million down payment before any Suning deal can go ahead.