After China¡¦s entering WTO structure, there was no boundary in retailing industry from November, 2004. It not only changed operating rules, but also aroused many M&A events. Because we cannot get information about China freely, we have few ideas about this issue. Based on this phenomenon, the focus of the research is to realize the M&A development in China retailing industry with the cautiously growing up in China. This research can be divided into three parts: the structure of the theory, the development of retailing industry and M&A in China, and induce the M&A practical process of the case. Through relevant theories, we can verify whether these theories are suitable for the KSFs and motivations in the retailing industry. Meanwhile, we can present the overview and background of M&A styles and cases in China, and generalize the M&A practical process through formal or informal interviews with related executives. At last, with the viewpoint of M&A practical process, we address practical suggestions to the government, the companies which want to make an M&A move, and the case. The purpose of this research is to picture the environment of China retailing industry and M&A processes from the case ¡§TESCO merged HY-mall¡¨. By generalizing from the total environment to the case, we can understand the details when making an M&A in China retailing industry.

Why does Wal-Mart - the world¡¦s number one corporation of retailing industry in ¡§Fortune Global 500¡¨ ¡V not have the same effect of business expansion in China market as in the international market? How does foreign investment of retailing do under Chinese economic reform to entering WTO¡HThis study mainly discusses business expansion of multinational corporations in China Retailing. The readers can understand how multinational corporations developed in global market and China¡¦s market through the analysis of retailing development under the global economy. In addition, the developing progress of China retailing industry after economic reform is also analyzed in this research. In the example of Wal-Mart¡¦s business expansion in China, this study found that if foreign retailing corporations wanted to expand their business well, they needed to obey the limitation by law and still overcame the problems such as government relation, transportation and consumers preference. This study also found that Wal-Mart wanted to transplant their successful business model into China. However it can¡¦t be done under current law of China and limitations. Before there is no adjustment or any new business model for ¡§Wal-Mart China¡¨, observation of transplanting successful mode in China can be a great help for the readers to understand how Wal-Mart developed in China.