Suning Appliance announced that it will buy a 27.36% in Japanese retailer Laox, the Wall Street Journal reported. The Chinese consumer electronics company has agreed to pay US$8.4 million for the stake in its Japanese rival which will also make it the largest shareholder in the all-cash deal. The deal, once completed will see the Nanjing-based firm pay JPY12 (US$0.13) per share. The deal is reportedly part of Suning’s long-term growth strategy and the company said that deal will allow it to gain experience in the international consumer electronics market via exposure to Japan. Laox’s sales have decreased nearly by 75% since 2000 as a result of tough competition from domestic rivals such as Yamada Denki. After posting its ninth consecutive year of net losses in the last fiscal year, Laox embarked on a restructuring of its business with the goal of reducing its retail store network from 67 nationwide to just nine.
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