WAL-MART'S "Cheap Sale" Of Foreign Retail In China Is Fading Away.

The development of WAL-MART, a global retail leader, has come to a crossroads in China.

Huarun group recently sold 21 shares and creditor's rights of WAL-MART branches in China for 3 billion 335 million yuan to allow WAL-MART to become the most likely buyer. However, in the retail industry, no matter who eventually received the offer, the sole proprietorship or continued joint venture has a close relationship with WAL-MART in the future. The development of domestic supermarket chains and the growing maturity of consumer demand, the halo of foreign retail in China is gradually fading away.

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It seems that WAL-MART's selling by Huarun is the pfer of competition power between the domestic market and foreign retail, and it is also a profile of foreign retail localization dilemma.

In the view of these people, "in the next 3-5 years, the concentration degree of the supermarket industry will be even higher, and mergers and acquisitions will happen one after another. There will be five or six monopolistic enterprises."

It may only be retained in first tier cities and coastal cities. "

According to the Shanghai joint stock exchange listing information, Huarun group's Huarun Shenzhen Investment and Investment Co., Ltd., respectively, sold 21 shares of WAL-MART's branches and claims in China, and sold it to the 35% stake of WAL-MART deep investment department limited, a joint venture company of WAL-MART (China) Investment Limited, and its claims.

Guangdong,

35% of the 9 WAL-MART shares in Henan, Hubei and other places were sold at the selling price of 1 yuan, of which 8 joint ventures suffered losses last year.

If the pferee has the intention to grant the above items, all the 21 WAL-MART shares that have been pferred by the pferor at the Shanghai stock exchange must be pferred. The paction price shall be paid at one time, and the total pfer price of all the listed assets will be about 3 billion 335 million yuan.

The listing information shows that the pferee has made continuous profits in the last 3 years, and the net assets audited in the past year are not less than the accumulated net assets of the 21 companies on the basis of the audited assessment date. The pferee will not pfer the shares in the five years after becoming a new shareholder unless the original shareholder agrees.

These restrictive conditions are considered by the outside world to be the biggest possibility for WAL-MART to take over. After wholly holding 1 shop, WAL-MART may continue to withdraw all its original business from its holdings. It can also get through the online business practice of O2O.

Chen Liping, a professor at Capital University of Economics and Business, thinks that WAL-MART's sole proprietorship is no problem from the legal point of view. The existing foreign retail joint venture is also considered in the integrated supply chain to make up for the lack of access to the market.

An unnamed foreign retail practitioner said that in the early 90s of last century, foreign retailers entered the country in large numbers, and because of policy restrictions, they could only choose joint ventures from mainland enterprises. However, after China's accession to WTO, foreign investors repurchased shares to achieve sole proprietorship.

"One is the divergence between the two sides. The other is that the Chinese side only invested in strategic investment and then sold it because of strategic adjustment."

This is already a precedent in the domestic retail industry. In 2011, Shanghai Bailian returned to Shanghai Hualian Rosen Co., Ltd., and one of the reasons for the two sides to go their separate ways is that the development of convenience stores is not the same.

After that, Bailian Group vigorously developed its "fast passenger".

Huarun group's Huarun Wanjia itself is already a large retail giant.