China Tourism Group Duty Free Buys DFS’ Greater China Retail Business

Core Viewpoint - China Tourism Group Duty Free has agreed to acquire DFS's travel retail business in Greater China from LVMH and Robert Miller, enhancing its dominance in the market [1][2]. Group 1: Acquisition Details - The acquisition will be executed through China Duty Free International Ltd., granting CTG Duty-Free control over DFS retail stores in Hong Kong and Macao, excluding the City of Dreams store in Macao, along with intangible assets and intellectual properties for exclusive use in Greater China [2]. - The deal is expected to close within two months, contingent on customary closing conditions, with LVMH and the Miller family participating in a capital increase of CTG Duty-Free by subscribing to newly issued H-shares in Hong Kong [3]. Group 2: Strategic Cooperation - Following the transaction, DFS will continue its luxury travel retail operations globally, while CTG Duty-Free and LVMH have entered a memorandum of understanding to establish strategic cooperation in the retail sector [4]. - This collaboration aims to leverage the strengths of both companies, particularly in Greater China, with CTG Duty-Free operating nearly 200 duty-free stores across over 100 cities worldwide [5]. Group 3: Upcoming Projects - DFS Yalong Bay, the largest project by DFS, located in Sanya, Hainan, is set to be unveiled in phases starting later this year, covering over 1.38 million square feet and featuring more than 1,000 luxury brands [5][6]. - CTG Duty-Free is also set to gradually unveil a 2.1 million-square-foot duty-free retail complex in Sanya's Haitang Bay in partnership with Swire Properties [7].