From Reuters:
Top Chinese electronics retailer Gome Electrical Appliances Holding Ltd. plans to take over a smaller competitor for roughly US$630 million, as the arch-rivals team up to fend off the likes of U.S.-based Best Buy Inc. .
Gome, which like its rivals has been expanding at a breakneck clip to achieve scale while sacrificing margins for market share, agreed to buy number-three player China Paradise Electronics Retail Ltd.
The move will create a retail giant with about $8 billion in annual sales and a tenth of the market. Best Buy, the largest U.S. consumer electronics retailer, by comparison, racks up roughly $40 billion in worldwide annual sales.[Full Text]
