DFS, a global leader in luxury travel retail owned by LVMH, as well as DFS’s co-founder and shareholder, Robert Miller, and CTG Duty-Free, a prominent travel retail operator headquartered in Beijing, announced a definitive agreement. 

CTG Duty-Free will acquire DFS’s travel retail business in Hong Kong and Macau and intangible assets in Greater China.

Through this transaction, CTG Duty-Free will acquire the DFS retail stores in Hong Kong and Macau, as well as intangible assets for a series of DFS brands and intellectual properties for exclusive use in Greater China.

Michael Schriver, President of LVMH for North Asia, commented,

“For decades, DFS has played a pivotal role in shaping Hong Kong and Macau into premier destinations for travel retail. As we look to the future, we consider China Tourism Group 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.”

CTG Duty-Free will conduct the acquisition through its wholly owned subsidiary, China Duty Free International Limited. 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.

LVMH and the Miller Family will also participate in a capital increase of CTG Duty-Free by subscribing to newly issued H-shares listed in Hong Kong. The subscription amount represents a small part of their proceeds, and the subscription will be made upon completion of the transaction.

Ed Brennan, Chairman and CEO of DFS, commented,

“The sale of our Hong Kong and Macau stores marks an important step for DFS. DFS’s 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.”

CTG Duty-Free and LVMH also entered into a memorandum of understanding. Both parties aim to set up a strategic cooperation, notably in the retail sector, where the strategies of both parties are aligned and in line with the current business model of the LVMH Maisons. 

This cooperation will offer CTG Duty-Free and LVMH opportunities to leverage their respective strengths and forge further collaborations in Greater China to achieve mutual benefits, e.g., in the areas of product sales, store establishment, brand promotion, cultural communication, travel services, or customer experience.