Suning Agrees to Acquire Carrefour China for $30.6M

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Suning.com, a struggling Chinese retail giant, has finalized a settlement agreement to pay CNY220 million (approximately USD30.6 million) for the full acquisition and indirect ownership of the Chinese operations of a well-known French hypermarket chain.

As part of the agreement, the French company’s Chinese division will forgive existing debts and agree not to pursue legal action on any disputed matters involving Suning. Additionally, both Carrefour China and its consulting firm must cease using the Carrefour intellectual property within one month of signing the deal.

The dispute originated from a 2019 acquisition effort, where Suning and its subsidiary, Suning International, committed to paying CNY1 billion (around USD139.1 million) for a 16.7% stake in Carrefour China—covering arbitration and interest fees. Meanwhile, Carrefour China and its consulting firm were responsible for approximately EUR7.4 million (USD8.6 million) related to intellectual property, arbitration, and interest expenses.

The company’s board has approved this settlement, though the final approval awaits shareholder approval. The resolution, combined with ongoing cross-regional legal procedures, introduces some uncertainties. Suning announced that it will fund the settlement directly, partly through bank loans.

This agreement is expected to ease Suning’s debt burden, potentially generating around CNY1.1 billion through debt restructuring. The financial boost will allow the company to concentrate more on its core segments, including home appliances and electronic consumer goods.

Back in June 2019, Suning International reached a deal to acquire an 80% stake in Carrefour China Holdings from Carrefour Nederland and its parent company for CNY4.8 billion (about USD667.6 million). It also agreed to purchase the remaining 20% stake within 90 days if the current owner opts to sell, at a predetermined price, supported by a CNY1.2 billion guarantee to ensure purchase obligations are met.

Later, Suning and Carrefour, along with related entities, signed a licensing agreement allowing Carrefour China and associated firms to use the Carrefour intellectual property.

Shares of Suning, which are traded under special treatment, closed up 1.6% today at CNY1.93 (roughly 27 US cents) on the Shenzhen stock exchange.