It looks like China has become the new frontier for American companies. Not one day goes by without some American or European company announcing that it has acquired a Chinese company or has invested in a Chinese joint venture. Home Depot is the latest American giant to dive into the Chinese market. The Atlanta-based home improvement retailer announced Wednesday, Dec. 13, that it acquired The Home Way, China's first "big box" home-improvement chain for an undisclosed price. The Financial Times cited that its sources said Home Depot paid $100 million for The Home Way. The Chinese chain has 12 stores in six Chinese cities with 3,000 employees. With the fourth-largest economy in the world that is expected to grow 8% annually for the next four years, China's home-improvement market, which is valued at $50 billion, is ripe for growth. Home Depot has shown a great ability to conquer shores it's decided to enter. After making forays into Canada and Mexico, Home Depot is now No. 1 in those markets. With Home Depot expanding in China, don't be surprised if it continues its success in North America and its main competitor, Lowe's, looks to compete in those same markets — Gerald Magpily
See TheStreet.com article
Continue reading below
