The deal was valued at no more than $395 million, based on the aggregate enterprise value of $400 million. The acquisition will be “funded by internal resources, and settled in cash.”
China Daily
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People cross a road near a Louis Vuitton outlet in Hong Kong’s Central financial district on Jan 5, 2026. PHOTO: CHINA DAILY
January 21, 2026
HONG KONG – China Tourism Group Duty Free Corp (CDF), the largest tourism retailer on the Chinese mainland, on Tuesday announced a major expansion in the Guangdong-Hong Kong-Macao Greater Bay Area, with the acquisition of DFS’ Hong Kong and Macao businesses, along with a strategic partnership with French luxury conglomerate Louis Vuitton Moet Hennessy.
According to a filing with the Hong Kong stock exchange, CDF, a subsidiary of the State-owned travel group China Tourism Group Corp, will purchase all issued shares of DFS Cotai Limitada from DFS Venture Singapore and DFS Group, both owned by LVMH and the Miller family.
The deal was valued at no more than $395 million, based on the aggregate enterprise value of $400 million. The acquisition will be “funded by internal resources, and settled in cash”.
These acquisitions will see CDF take over DFS travel retail stores: two in Hong Kong — located at Tsim Sha Tsui’s New Sun Plaza and Causeway Bay’s Hysan Place — and seven outlets at various casino resorts in Macao. The nine outlets were valued at $441 million as of September. The company will also hold DFS brand’s intangible assets for exclusive use on the mainland, in Hong Kong and Macao.
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CDF said that through DFS’ stores in Hong Kong and Macao, it can expand its service network across the Greater Bay Area, and establish its leading position in the regional travel retail market.
This is an important initiative for the company to accelerate its international business layout, and to actively promote the “China-chic brands going global” strategy, CDF said.
“As a listed company controlled by a central State-owned enterprise, CDF remains committed to providing high-quality travel retail experiences to both domestic and international tourists, proactively fulfilling its responsibility as a central State-owned enterprise to support the high-quality development of the retail economy in Hong Kong and Macao,” the statement said.
As part of the agreement, CDF will issue up to 7.33 million new shares in LVMH’s subsidiary Delphine SAS, and 4.64 million new shares to the duty-free group’s founder, the Miller family. Following the subscription, LVMH and the Miller family will collectively hold around 0.57 percent of CDF’s total share capital.
The subscription price is HK$77.21 ($9.90) per share, an 11.66 percent discount on Monday’s closing price. The deal is expected to raise up to HK$924 million in net proceeds. The company’s directors described the transaction as fair, reasonable, and in the best interests of the company and its shareholders.
On Tuesday, CDF’s shares rose 3.71 percent and closed at HK$90.65, after surging 12 percent during the morning trading session upon the transaction announcement.
Additionally, CDF and LVMH signed a memorandum of understanding to establish a partnership in retail, covering product sales, store openings, and brand promotion.
“This cooperation will offer CDF and LVMH opportunities to leverage their respective strengths and forge further collaborations in the region to achieve mutual benefits in the areas of product sales, store establishment, brand promotion, cultural communication, travel services or customer experience,” the filing said.
The benchmark Hang Seng Index slipped 0.27 percent to close at 26,487 points, with a market turnover of HK$228.2 billion.
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