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.