Chinese company Sanpower Group has officially signed to buy British retailer House of Fraser.

Sanpower Group, together with its adviser Clyde & Co, and House of Fraser have signed the deal that sees Sanpower Group acquiring an 89 per cent stake in the retailer for approximately GBP480 million (US$800 million).

House of Fraser is Sanpower Group’s first major investment in the UK retail sector and China’s largest foreign retail investment to date.

“As Chinese retail sales are expected to grow at an annual average of 14 percent and British retail sales continue to recover, this deal opens new opportunities for market expansion for either party,” says Lynia Lau, chief representative of Clyde & Co, Beijing office.

“Furthermore, this ground-breaking transaction underscores the strength of Clyde & Co’s integrated offering in Greater China and our commitment to support clients in their inbound and outbound Chinese investments,” adds Lau.

House of Fraser was established in Scotland in 1849 and has around 60 stores in the UK and Ireland. While Sanpower Group owns Nanjing Xinjiekou department store and 100 more companies in various sectors in China.