LVMH, the French luxury giant, has agreed to sell part of its luxury travel retail business DFS.
The deal will see CTG Duty-Free acquire DFS stores in Hong Kong and Macau, as well as intangible assets in Greater China.
The latter includes a series of DFS brands and intellectual properties for exclusive use in the region.
LVMH owns DFS along with its co-founder Robert Miller.
As part of the deal, both LVMH and Miller will invest in CTG Duty-Free via subscribing to newly issued H-shares listed in Hong Kong.
LVMH and CTG Duty-Free have also agreed to cooperate on future collaborations with mutual benefits.
For example, product sales, store establishment, brand promotion, cultural communication, travel services or customer experience.
This will largely be in retail “where the strategies of both parties are aligned, and in line with the current business model of the LVMH maisons”, LVMH said in a statement announcing the deal.
“For decades, DFS has played a pivotal role in shaping Hong Kong and Macau into premier destinations for travel retail,” said Michael Schriver, President of LVMH for North Asia.
“As we look to the future, we consider CTG Duty-Free to be the ideal partner to operate the DFS business in Hong Kong and Macau and to lead it into its next chapter, thanks to their expertise and proven track record in travel retail.
“This whole operation underscores our confidence in the long-term potential of the Chinese market.”
The deal is expected to close in around two months, subject to customary closing conditions.
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