Home Depot Acquires Chinese Retailer

ATLANTA (AP) -- The Home Depot Inc., the world's largest home improvement retailer, announced Wednesday it has signed an agreement to acquire Chinese home improvement retailer The Home Way.

The deal has already received the necessary approval from the Chinese government and is expected to close by the end of the year. Terms of the deal were not disclosed but earlier reports put the value at $100 million.

"This acquisition provides us with a great point of entry in one of the world's largest and fastest-growing home improvement markets," Home Depot Chief Executive Bob Nardelli said in a news release. "The Home Way is a strong brand that is already established as a value and price leader among Chinese consumers."

The China stores will initially remain The Home Way, but will eventually be renamed Home Depot, Home Depot spokesman Jerry Shields said.

The acquisition is part of an effort by Home Depot to expand into China. The Home Way gives Atlanta-based Home Depot an immediate retail presence of 12 stores in six Chinese cities.

The Home Depot announcement, which was made in Beijing, came as GE Aviation announced a jet engine sale as U.S. and Chinese companies announced deals ahead of a visit to Beijing by U.S. Treasury Secretary Henry Paulson for trade talks.

The deals were signed at a ceremony attended by U.S. Commerce Secretary Carlos Gutierrez, a member of Paulson's delegation. Such deals are frequently announced ahead of U.S.-Chinese meetings as Beijing tries to mollify American critics of its soaring trade surplus with the United States.

On the Net:

The Home Depot Inc.: http://www.homedepot.com

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