Japanese company Itochu is taking a 30 per cent stake in Hong Kong retailer ASF Limited.

ASF was established by Fenix to handle its retail brands including luxury women’s fashion brand Anteprima and food and sundries supermarket chain City Super. The company also runs a logistics business.

The agreement creates a synergy between the two parties that will allow each other to expand the development of its brand retail businesses in Asia and boost overseas earnings.

The merger aims to hit sales of 20 billion yen ($194.1 million) in five years.

Itochu did not disclose the amount it invested in ASF.