Beijing Morning Post, 12/19/07
According to an informed source, Gome (0493.HK) has finalized a deal to purchase Shaanxi mobile phone retailer Cellstar, with an announcement due soon.
Speaking on behalf of Cellstar chairman Yao Jian, marketing department head Yuan Ming admitted that the two firms have been in touch, but refused to reveal details. Gome spokesperson He Yangqing did not deny the rumors, saying that as a listed company an announcement would be final.
In September media reports of negotiations between the two parties appeared, with Gome said to be set to spend RMB 50 - 80 mln to purchase Cellstar's 22 stores.
Cellstar has a 30% market share in northwest China, with annual sales worth RMB 300 mln, and is one of the largest mobile telecommunications retailers in the region. Cellstar's parent company, US firm Cellstar Corporation, pulled out of China at the end of 2006 due to failing operations, leaving Shaanxi Cellstar looking for a buyer.