Lianhua Supermarket Holdings Co. (Shanghai, China) and its subsidiary Shanghai Lianhua Supermarket Development Co. have entered into an agreement with Bailian Group Co. to acquire the Hualian Supermarket Co. The transaction includes Hualian’s 1396 units, bringing Lianhua’s total store number to 5268 outlets, including 3184 supermarkets.
The sale will boost Lianhua’s market share in the Yangtze River Delta and Shanghai regions, making it a dominant player in Shanghai's supermarket business. "The acquisition helps to expand Lianhua Supermarket's economies of scale and builds on our competitive strengths,” says chairman Ma Xinsheng. “Looking ahead, we will continue developing our 'Strong Outlet Strategy' and explore market opportunities by adopting a dual-brand marketing strategy and integration of resources. We aim to become the largest and most efficient retail chain operator in China and create values for our shareholders."
The Hualian Supermarket chain was founded in 1992 and has a network of 1183 franchise outlets and 213 direct outlets, concentrated in Shanghai, Jiangsu Province and other cities in the Yangtze River Delta region.
Lianhua Supermarket Holdings was established in Shanghai in 1991 and has a retail chain network of 3872 stores under the Century Mart, Lianhua and Lianhua Quik banners. The company ranked as the top retail chain operator for fast moving consumer products in China in 2008.