Beijing-based China Tourism Group Duty Free has announced a definite agreement to acquire DFS' travel retail stores in Hong Kong and Macao, along with intangible assets in Greater China.
Under the deal, CTG Duty-Free will acquire all DFS stores in Macao, excluding the outlet at City of Dreams, from DFS Group, the global luxury travel retailer owned by LVMH.
The cash transaction, valued at US$395 million, will see the two groups pursue further collaborations, particularly in the retail sector and across LVMH Maisons with aligned business models.
LVMH considers CTG to be the “ideal partner” to move DFS Hong Kong and Macau into the next chapter, “thanks to their expertise and proven track record in travel retail” said Michael Schriver, president of LVMH for North Asia.
For CTG, the move represents “a significant step in accelerating CTG Duty-Free’s international business layout and actively implementing the Greater Bay Area Strategy and the “China-chic Brands Going Global” Strategy,” said executive director and president, Luke Chang.
DFS has said that it will continue to operate its other luxury travel retail operations worldwide.