Wal-Mart Tops the of Biggest Deals of 2007
by February 11, 2008 12:00 am 90 views
(To view a pdf of 2007’s biggest deals, click here.)
Wall-Mart Stores Inc. topped our Biggest Deals of 2007 list with a couple of billion dollar deals. In February, the retail giant agreed to a $1.2 billion transaction with Bounteous Co. Ltd. of Taiwan to purchase a 35 percent stake in its Trust-Mart stores in China. Under the agreement, Wal-Mart would acquire control of the chain by 2010, subject to certain conditions in the agreement.
Bounteous operates 101 “hypermarkets” in 34 Chinese cities under the Trust-Mart brand. In 2005, Trust-Mart had sales of $1.7 billion. Trust-Mart would continue to operate under that name, but it and Wal-Mart will both open new stores in China, one of the world’s fastest-growing retail markets.
Wal-Mart already employed 37,000 people through its 68 Supercenters, three Sam’s Clubs and two Neighborhood Markets in 36 Chinese cities.
In October, Wal-Mart bought the remaining shares of Seiyu Ltd. of Japan for $900 million. Seiyu has been struggling in Japan, and Mike Duke, vice chairman of Wal-Mart, said the company believes full ownership of Seiyu is the best way for both companies to “accelerate the delivery of long-term benefits” to customers, employees and business partners.