DFS and China Tourism Group (CTG) Duty Free have announced an agreement for the sale of DFS’ retail business across Greater China.
DFS is a global luxury travel retailer owned by LVMH and DFS’ co-founder and shareholder Robert Miller. The agreement with CTG Duty Free will see the acquisition of businesses in Hong Kong, Macau, and Greater China.
CTG Duty Free will also acquire a series of DFS brands and intellectual properties for exclusive use in Greater China. The proceeds of this transaction will be paid in cash. Following this transaction, DFS will continue to operate its other luxury travel retail operations worldwide.
“This move will further expand CTG Duty Free’s service network across the Greater Bay Area, aiming to build a platform for promoting China-chic brands globally and establish an international business mid-platform,” Luke Chang, executive director and president of CTG Duty Free, said.
“CTG Duty Free remains committed to providing high-quality travel retail experiences to both domestic and international tourists, fulfilling its responsibility as a central state-owned enterprise-controlled listed company to support the high-quality development of the retail economy in Hong Kong and Macau.”
DFS described the sale as an “important step” for the company.
Chairman and CEO Ed Brennan said: “DFS’ well-established presence and operational excellence in Hong Kong and Macau is an achievement we take great pride in.
“The DFS shopping experience will be carried forward and enhanced by the new skills and perspectives that CTG Duty Free will bring. We are proud of our journey in this region and grateful to everyone who has been a part of it.”
Michael Schriver, president of LVMH for North Asia said the move underscores LVMH’s confidence in “the long-term potential of the Chinese market”.
The transaction is expected to close in around two months.
