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Gome makes $630m bid for rival

Gome Electrical Appliances Holding offered to pay about US$630 million, much or all of it in stock, for China Paradise Electronics Retail to consolidate its position as the country's largest home appliance retailer and boost falling margins, the South China Morning Post reported, citing sources familiar with the deal. Beijing-based Gome is offering about one share for every three of Shanghai-based China Paradise, taking advantage of a slump in China Paradise stock, the sources said. As of April, Gome had 420 stores, Suning Appliance had 363 and China Paradise 193.

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