French retail giant Carrefour and a Chinese retail firm has established a joint-venture in Hebei Province in an effort to further explore the north China market.
Carrefour and Hebei-based Baolongcang (BLC) Commercial Chain Co. Ltd. respectively holds 51 percent and 49 percent of the shares in the new company -- Hebei BLC Carrefour Commercial Co. Ltd., the two partners said during a press conference Friday in this capital city of Hebei.
BLC's 11 stores, which are among China's top 100 chain stores and top 500 brands, will be run under the management of the new company.
"Carrefour is not the merging side but a cooperative partner," said Luo Weiguo, Carrefour's President and Chief Executive Officer of the China region.
"BLC's current suppliers and its Hebei-based shopping center will remain and be brought into Carrefour's system," Luo added.
Yang Longfei, BLC's founder, said BLC would benefit from Carrefour in terms of comprehensive strength and market competitiveness.
Carrefour first came to China in 1995 and now operates 160 stores in 45 cities throughout the country, employing 47,000 people. In 2009, sales of Carrefour China reached 36.6 billion yuan (5.4 billion U.S. dollars).
