State-owned department store chains to merge amid SOE reform trend

Department store chain Guangzhou Grandbuy Co announced on Monday its controlling shareholder has agreed to acquire a 100 percent stake in rival chain Guangzhou Friendship Group Co.

The move paves the way for the merger of the two major Guangdong province-based department store groups, and marks a step forward in the reform of State-owned enterprises in Guangzhou.

The agreement between Guangzhou Grandbuy's and Guangzhou Friendship's controlling shareholders - Guangzhou General Merchandise Group and Guangzhou Yuexiu Financial Holdings Group Co, respectively - follows SOE reform measures issued by the Guangzhou municipal government in August, and decisions from the Guangzhou Municipal State-owned Assets Supervision and Administration Commission.