Beijing - XINHUA
Chinese supermarket operator Wumart Store Inc will abandon its proposed HK$2.34 billion (US$302 million) takeover of 36 outlets of CP Lotus Corporation on China’s mainland. The news came two months after the companies announced a framework agreement and a share swap deal that would have consolidated their presence in the retail grocery market. Wumart said in a statement “the company would wish to emphasize that it has taken into account the best interests of its shareholders.” CP Lotus Corporation said in a stock exchange filing yesterday that “despite extensive negotiations in good faith,” the two parties were not able to reach agreement on certain key terms for the proposed transactions. Wumart fell 7 percent in morning trading before closing up 0.18 percent to HK$10.96 yesterday while CP Lotus shed 4.3 percent to 20 Hong Kong cents. Wumart had 1.8 percent market share while PC Lotus had 2.3 percent in 2012, said researcher Euromonitor International.