Supermarket chain Ito-Yokado Co. said Wednesday it will turn its Chinese supermarket joint venture, Hua Tang Yokado Commercial Co., into a consolidated subsidiary by raising its stake to 51.75 percent from the current 36.75 percent.
Ito-Yokado plans to soon purchase a 15 percent interest in the venture for $24.38 million from a Chinese state-owned liquor and sugar seller that owns 51 percent of Hua Tang Yokado. The remaining stake is held by the Itochu Corp. group.
Hua Tang Yokado was set up in 1997 as the first foreign-affiliated supermarket chain in China to be set up under regulations requiring state-owned concerns to hold a majority stake. The requirement was abolished last year after China's entry into the World Trade Organization in 2001.
By taking control of the Chinese unit, which runs five stores in China, the major Japanese supermarket chain wants to strengthen its retail operations in the fast-growing economy.
Ito-Yokado said Akihiko Hanawa, senior managing director in charge of Chinese operations, is set to become Hua Tang's top representative after the stock deal.