Suning set to be Laox's top shareholder

NANJING, China (Kyodo) Suning Appliance Co., China's second-largest consumer electronics retailer, says it will bring Laox Co. under its wing by becoming its top shareholder with a 27.36 percent stake.

Laox will be the first major Japanese consumer electronics discount chain to come under the umbrella of a Chinese firm.

Suning Appliance said Wednesday it will send two officials to the Laox board to straighten out its loss-making management in three years.

Laox will float new shares worth about ¥1.5 billion to Suning Appliance and others on a private placement basis.

Suning Appliance said it intends to acquire Japanese management techniques to enhance its competitive edge with the aim of taking over first place in the Chinese market.

Laox, which runs a network of home electronics discount stores mainly in the Tokyo metropolitan area, has been forced to close some of its outlets amid fierce price competition with rival chains.

Suning Appliance, which runs a network of 800 stores in Beijing, Shanghai and other locations, posted sales of 102.3 billion yuan (¥1.4 trillion) in 2008.

China's consumer electronics market has received support from government economic stimulus measures as well as the nation's rise in affluence.