DFS, the global luxury travel retailer owned by LVMH and co-founder Robert Miller, has announced that it will sell its retail business across Greater China to the China Tourism Group (CTG) Duty Free. The deal includes the acquisition of DFS’ businesses in Hong Kong, Macau, and Greater China.
In addition to the business transactions, CTG Duty Free will also acquire a series of DFS brands and intellectual property rights for exclusive use within Greater China. The proceeds from this transaction will be paid in cash. Following this deal, DFS will continue its luxury travel retail operations worldwide.
Luke Chang, executive director and president of CTG Duty Free, has expressed his belief that this move will extend CTG Duty Free’s service network across the Greater Bay Area. The aim is to construct a platform for promoting Chinese brands globally and establish an international business mid-platform. Chang added that CTG Duty Free is committed to providing superior travel retail experiences for both domestic and international tourists, and supporting the high-quality development of the retail economy in Hong Kong and Macau.
DFS views the sale as a significant move for the company. Chairman and CEO Ed Brennan stated that DFS is immensely proud of their established presence and operational excellence in Hong Kong and Macau. He expressed confidence that the DFS shopping experience will be enhanced by the new skills and perspectives that CTG Duty Free will bring to the table. Michael Schriver, president of LVMH for North Asia, said the move demonstrates LVMH’s faith in the long-term potential of the Chinese market.
The deal is predicted to be finalized in approximately two months.
What businesses are included in the DFS and CTG Duty Free deal?
DFS’ businesses in Hong Kong, Macau, and Greater China are included in the deal.
What will happen to the DFS brands under the deal?
CTG Duty Free will acquire a series of DFS brands and intellectual property rights for exclusive use in Greater China.
What does this transaction mean for DFS?
DFS views the sale as a crucial step for the company, expressing confidence that CTG Duty Free will bring new skills and perspectives that will enhance the DFS shopping experience.
