Walmart looks to buy controlling stake in Chinese e-tailer Yihaodian

Eyes on controlling stake

The US superstore giant plans to increase its stake in the Chinese online retailer from 18% to 51% (view press release). The financials of the deal have not yet been disclosed but consent from Chinese government regulators will first be needed in order for the acquisition to go ahead. Yihaodian was founded in July 2008 and now employs 5400 people; it has a logistics network covering Shanghai, Beijing, Guangzhou, Wuhan and Chengdu.

Neil Ashe, president and CEO of Walmart Global eCommerce says that “Chinese consumers are already connected to the world through smartphones and social media. We are on track to create the next generation of eCommerce, offering the latest in online innovations to give a unique shopping experience.”

According to a report from research firm Analysys International the Chinese third party online payment industry increased 95% for the third quarter of 2011 compared with the same period the year before. The industry is set to expand by 51% this year but predicted to slow to 35% growth in 2013.

 

               

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