Home improvement group Kingfisher has agreed to sell a 70% stake in its loss-making B&Q China business to Wumei Holdings for £140m.
The deal follows Kingfisher's announcement in March of its plans to look for a strategic partner to help develop its B&Q business in China, which is made up of 39 stores and employs 3,000.
"I am delighted to have found a strong retail partner who will help us to release the financial value of our business in China," said Véronique Laury, who succeeded Ian Cheshire as Kingfisher's chief executive on December 8.
"This will enable us to focus our financial resources and management talent on the large and attractive European home improvement market," she said.
Kingfisher, which trades as B&Q in Ireland and Britain and Castorama and Brico Depot in France, is Europe's biggest home improvement retailer.
Beijing-based Wumei has a retail network comprising around 650 supermarkets and 10 department stores in northern, eastern and western China.
The deal is conditional on Chinese Ministry of Commerce approval and, if approved, is expected to close during the first half of next year.
