by SHEN Xiaoge

China Tourism Group Duty Free Co., Ltd. (CTG Duty-Free) said on Jan. 19 it will acquire DFS Group's Greater China travel retail business for up to $395 million in cash, expanding its presence in Hong Kong and Macau and strengthening ties with luxury giant LVMH.

CTG Duty-Free said its wholly owned subsidiary, China Tourism Group Duty Free International, has signed a framework agreement to buy equity and assets related to DFS's Greater China operations, including 100% of DFS Cotai Limitada, assets of two stores in Hong Kong and related intangible assets. The sellers include DFS Venture Singapore and DFS Group Ltd., which are ultimately owned by LVMH and the Miller family.

The company said the transaction is aimed at accelerating its overseas expansion and enhancing its international competitiveness. The deal is subject to customary closing conditions and is expected to be completed in about two months.

As part of the transaction, CTG Duty-Free has also signed share subscription agreements with Delphine SAS, an indirect wholly owned subsidiary of LVMH, and Shoppers Holdings HK Ltd., an indirect subsidiary acting as trustee for a Miller family trust. After the acquisition closes, CTG plans to issue up to 7.33 million H shares to Delphine SAS and up to 4.64 million H shares to Shoppers Holdings HK at HK$77.21 per share.

Separately, CTG Duty-Free and LVMH signed a strategic cooperation memorandum covering product sales, store openings, brand promotion and customer experience in the Greater China market, the company said.

CTG Duty-Free shares rose after the announcement. Its A shares closed up 2.88% at 96.09 yuan on Jan. 20, after rising as much as 5% intraday, while its H shares gained 3.72% to HK$90.65.

DFS, founded in 1960, is a high-end travel retailer with stores in major airports and downtown locations worldwide. The company reported revenue of 4.149 billion yuan and net profit of 128 million yuan in 2024, and revenue of 2.754 billion yuan with net profit of 133 million yuan in the first three quarters of 2025.

The deal comes as China's duty-free market, anchored by Hainan Island as its main domestic hub, shows signs of stabilizing after a slowdown, following the launch of the island's long-planned port closure program.