B&Q owner Kingfisher has revealed plans to sell a controlling stake in its loss-making China business for £140m as it focuses on Europe.
Kingfisher, which has 1,176 stores across 11 countries in Europe and Asia, says it will offload a 70 per cent stake in the B&Q operation to Beijing-based retail group Wumei Holdings.
B&Q opened its first store in China in 1999 and now has 39 outlets and employs more than 3,000 staff.
However, sales in the country fell by 7.6 per cent to £163m in the first half of this year after the business was impacted by a slowing Chinese property market.
Kingfisher announced earlier this year it was looking for a partner to develop its Chinese business.
Veronique Laury, chief executive, who took over from Sir Ian Cheshire at the start of this month, said it had found a strong retail partner.
She added: "This will enable us to focus our financial resources and management talent on the large and attractive European home improvement market."
Wumei, founded in 1994, is one of China's leading retail chain operators with about 650 supermarkets.
Kingfisher expects the sale to be completed in the first half of next year.
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