Retail giant Suning buys 70% share in Inter Milan for $300m

A security guard keeps watch before a news conference with Chinese retailer Suning and Italy's Inter Milan in Nanjing, Jiangsu Province, China June 6, 2016.[Photo/Agencies]

Chinese retail giant Suning Commerce Group announced on Monday afternoon that it has signed a 270-milllion-euro ($307 million) deal to acquire 70 percent stake in Italian soccer club Inter Milan, a move poised to bring China and one of the world's most renowned clubs closer.

Suning Sports Group, a subsidiary of the Jiangsu-based electronics retailer, sealed the deal by subscribing new shares while purchasing old ones, said the company at a news conference in Nanjing.

Erick Thohir's International Sports Capital, the former majority shareholder of Inter Milan, will hold the remaining 30 percent stake.

"I think this cooperation is very important because Suning has set up a bridge between China and one of the most renowned clubs in Italy," Xinhua News Agency reported, citing Chinese Football Association (CFA) head Cai Zhenhua a day earlier.

Suning, one of the largest Chinese electronics retailers with annual revenues topping $20 billion, already splashed millions of dollars on its Chinese Super League team which boasts stars such as Brazil's Alex Teixeira and former Chelsea midfielder Ramires.

The retailing behemoth, which owns Chinese online content platform PPTV, has also expanded its presence in the sport by forging ties with Spanish champions FC Barcelona and England's Liverpool FC.

Media reports said Inter's cross-town rivals AC Milan is also in talks with potential investors from China, and several Chinese companies, including Kweichow Moutai, will join hands to buy 70 percent stake in AC Milan.

Kweichow Moutai, the country's leading liquor producer, has denied the reports.

Xinhua contributed to this story.