According to reports in local media, Wal-Mart has suspended its merger with Trust-Mart stores in China.
While Wal-Mart gave no comment as to the suspension of the merger, an insider reveals that the company invested tens of millions of US dollars in the renovation of Trust-Mart’s three outlets in Shenzhen and Guangzhou, only to see the performance of those stores decrease by nearly 30 percent post-renovation. In addition, several Trust-Mart executives departed the company during the three-year merger period. These developments are believed to have led Wal-Mart to reconsider its merger project and suspend it temporarily.