China’s second largest home appliance chain Suning is poised to buy a ¥800m (£5.4m)stake in struggling Japanese consumer electronics retailer Laox.

Suning will acquire 66.7 million shares at ¥12 (8p) a share. The deal will give it a 27 per cent holding, making it Laox’s largest shareholder.

A formal arrangement between the two groups is yet to be struck.

Suning will revamp Laox’s stores and share its buying operations. Laox made a loss of ¥12.6bn (£85m) in the year to March 31.

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