Economic news
Costco buys remaining stake in Taiwan joint venture for $1.05 billion
2022.07.01 04:25
FILE PHOTO: A sign is seen outside a Costco Wholesale store in Glenview, Illinois, U.S. May 24, 2016. REUTERS/Jim Young/
(Reuters) -Costco Wholesale Corp said on Thursday it bought the 45% stake it did not already own in its Taiwan joint venture, Costco-Taiwan, for $1.05 billion.
The deal, executed through a unit, is expected to add to the company’s earnings per share by 1% to 1-1/2%, Costco (NASDAQ:COST) said in a statement.
The membership-only retailer operates 833 warehouses globally, including 14 in Taiwan. It also runs e-commerce sites in the island.
The purchase comes at a time when Costco’s margins are being squeezed by higher costs arising from supply chain disruptions and the impact of the Russia-Ukraine war.
