Sanpower confirms deal with House of Fraser

The deal between House of Fraser and Chinese conglomerate Sanpower

Group has been officially confirmed.

Nanjing Xinjiekou, one of China's oldest department stores owed by Sanpower, issued a statement to the Shanghai Stock exchange Tuesday confirming news that the Group had ended discussions to purchase 89 percent of British department store chain House of Fraser and are in the final steps of signing the deal.

The Group also revealed plans to establish a unit in the country to complete its acquisition, which Sanpower aims to pay in cash using its own debt and capital. When completed, the deal is said to be the largest overseas investment in a retailing company completed by a Chinese company.

Sanpower's deal to acquire House of Fraser, which currently has 61 stores across the UK and Ireland, values the department store chain at over 450 million pounds.