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By
Reuters
Published
May 23, 2010
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Renown to become unit of China textile firm

By
Reuters
Published
May 23, 2010

TOKYO, May 23 (Reuters) - Japanese apparel maker Renown Inc (3606.T) has entered final talks with China's Shandong Ruyi to become a unit of the Chinese textile company, business daily Nikkei reported on Sunday 23 May.


Photo: www.renown.com

Ruyi will acquire a roughly 40 percent stake in Renown, investing about 4 billion yen ($44.44 million) and becoming Renown's leading shareholder through a third-party allocation of shares, the Japanese newspaper said.

Once the deal is completed, Renown, which has struggled to shore up its finances partly due to weak department sales, will become the largest Japanese company to be absorbed by a Chinese firm, it added. ($1=90.00 Yen) (Reporting by Yoko Nishikawa; Editing by Jerry Norton)

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