U.S. home improvement retailer, Home Depot Inc.s efforts to enter China, has finally paid off. Recently the company signed an agreement to purchase The Home Way, a Chinese home improvement chain. Through this acquisition, Home Depot gets access to12 stores in the 6 cities.
Post approval in 2005 from the Chinese government to invest in stores, Home Depot expects to tap the USD 50 billion home improvement market in China. The home improvement market in China is estimated to grow at a rate of 20 per cent per year.
A company official confirmed receiving approvals from important Chinese government regulatory authorities. Reiterating the fact that this acquisition is a very significant chapter in the companys’ foreign expansion plan, he said that the deal is likely to be sealed by the year-end. However, the company has so far refused to divulge any detail about the agreement. Previously, the companys attempt to acquire Orient Home, a bigger chain store in China, proved unsuccessful.