LVMH's DFS exits Greater China retail amidst CTG Duty-Free takeover

The deal includes retail stores and brand intellectual property.

DFS Group, owned by LVMH and DFS co-founder Robert Miller, has agreed to sell its Hong Kong and Macau travel retail business to CTG Duty-Free, a Beijing-based travel retail operator.

The deal covers DFS retail stores in Hong Kong and Macau, as well as related DFS brands and intellectual property for exclusive use in Greater China.

CTG Duty-Free will make the acquisition through its wholly owned subsidiary, China Duty Free International Limited, with the transaction to be paid entirely in cash.

DFS will continue operating its travel retail business in other markets.

As part of the broader transaction, LVMH and the Miller family will subscribe to newly issued H-shares in CTG Duty-Free following completion, using a small portion of the sale proceeds.

CTG Duty-Free and LVMH have also signed a memorandum of understanding to pursue strategic cooperation in retail and related areas in Greater China, including store development, product sales, brand promotion and customer experience.

CTG Duty-Free President Luke Chang said the acquisition will strengthen the company’s presence in the Guangdong–Hong Kong–Macau Greater Bay Area and support its international expansion strategy.

The transaction is subject to customary closing conditions and is expected to close in about two months.

China Galaxy International is advising CTG Duty-Free financially. King & Wood Mallesons and Freshfields are acting as legal advisers.