The Home Depot signed a definitive agreement to acquire The Home Way, China’s first home improvement retailer. The transaction was expected to close by the end of 2006. This acquisition provides The Home Depot with an immediate retail presence in China with 12 stores in six cities. Retail operations in the Chinese home improvement market are valued at nearly $50 billion and have been growing at a compounded annual rate of 20%, the company said. Terms were not disclosed.