Gome Electrical Appliances Holdings, the largest electronics retailer in China, will offer US$677 million for rival Paradise Electronics Retail in an effort to shore up falling margins and solidify its position in the face of tighter competition, the South China Morning Post reported. China Paradise shares traded at US$0.26 before trade was suspended last Tuesday, while the last price for Gome shares was US$0.81. Gome has proposed that its chairman, Wong Kwong-you, China's richest man, remain chairman of the merged company while China Paradise's Chen Xiao would be chief executive. The entry of foreign retailers into the market, including US-based Best Buy, has been chipping away at profits across the industry.
You must log in to post a comment.