Appliance and electronics retailer Gome says it officially acquired 2,245,898,565 shares of Shanghai Yongle Electronics, accounting for 95.30% of the company's total, on October 17.

According to the acquisition plan, Yongle will become a wholly-owned company of Gome after the transaction is completed and its shares will be withdrawn from the Hong Kong Exchange.

Gome has spent HK$5.268 billion on the acquisition.

In April 2006, Song Hong, general manager of rival electronic appliance retailer Dazhong, ended the company's merger agreement with Gome. Dazhong and Yongle had previously signed a merger agreement, but Song said Yongle had violated the agreement because Yongle has also signed cooperative agreements with Dazhong's rival Gome.

When Dazhong and Yongle first signed their agreement in April, Yongle provided a CNY150 million initial payment to Dazhong, which Dazhong now says it will keep as a penalty for breach of contract.


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