Nepstar Suspends Acquisition Of Wulin Drugstore
This article was originally published in PharmAsia News
Nepstar Chain Drugstore has suspended its acquisition of Hangzhou Wulin Drugstore due to a lack of consensus on the terms of agreement. Sources reveal that the deal is worth about RMB 40 million and price was the key issue that stalls the process. After buying 68 drugstores under Ningbo Xinshiji Pharmaceutical's Drug Chain with RMB 30 million (PharmAsia News March 3, 2008) and Huirentang's 18 chain drugstores in Dongguan for RMB 2.3 million (PharmAsia News March 17, 2008) early this year, Nepstar was all set to acquire Wulin Drugstores. The firm aims to open 1,050 new shops by acquisition within 2008. However, the plan may derail due to high top-level management turnover that reflects the pressure to perform amidst its rapid expansion. (Click here for more - Chinese Language)
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