LVMH sells its Hong Kong and Macau duty-free businesses to a Chinese state-owned enterprise, pursuing a strategic partnership.

LVMH sold its Hong Kong and Macau duty-free businesses to a Chinese state-owned enterprise for a record-breaking $395 million, pursuing a strategic partnership that reflects the brand's global restructuring through local alliances.

On January 20, 2026, at 10:06 AM, Nikkei Asia reported that: The French luxury group Louis Vuitton has reached an agreement to transfer DFS Group's duty-free shop business in Hong Kong and Macau to a Chinese state-owned enterprise. To further establish strategic partnerships in the Chinese market.

China Tourism Group Duty Free (CTG Duty Free), the Chinese buyer, disclosed in a filing to the Hong Kong Stock Exchange on Tuesday morning that it will acquire LVMH Moët Hennessy Louis Vuitton's duty-free business, including intangible assets related to it, in mainland China for a value not exceeding US$395 million. CTG Duty Free operates seven stores in Macau and two in Hong Kong.

In the same deal, LVMH and Robert Miller, co-founder of DFS Group, will acquire nearly 12 million shares of Hong Kong-listed CTG Duty Free for HK$924 million, or approximately US$118.5 million. The shares were traded at HK$77.21 per share, about 11.7% below Monday's closing price. However, CTG Duty Free shares surged after the market opened, rising more than 12% in the morning to HK$97.95, while the Shanghai-listed shares jumped nearly 7% to 99.81 yuan.

Following the new share issuance, the parent company, China Tourism Group (CTG), will retain more than 50% ownership in CTG Duty Free. CTG is one of China's 100 strategic state-owned enterprises, directly under the supervision of the State Council.

In addition, LVMH and CTG Duty Free also signed a Memorandum of Understanding (MoU) on strategic cooperation in Southern China, outlining a scope of cooperation covering product distribution, store opening, brand promotion, cultural communication, tourism services, and customer experiences.

This deal reflects a trend of many international brands restructuring their businesses in China by partnering with local allies. Previously, late last year, Starbucks and Burger King also sold majority stakes in their Chinese operations to domestic partners.

Michael Shriver, President of North Asia Operations at LVMH. The statement said that the agreement reinforces our confidence in the long-term potential of the Chinese market and reaffirms that CTG Duty Free is the ideal partner for operating DFS businesses in Hong Kong and Macau, ushering in a new chapter for the business.

Data from LVMH's third-quarter earnings report, released in mid-October, indicates that DFS is showing improved revenue trends, particularly in Macau and Hong Kong, and that restructuring measures implemented since the beginning of the year are beginning to show results.

However, DFS will transfer its Hong Kong operations, where its business originated, to a Chinese state-owned enterprise. Ed Brennan, Chairman and CEO of DFS, stated that the sale of stores in Hong Kong and Macau is a significant step for the company and a proud achievement. Meanwhile, LVMH indicated that DFS stores in other regions worldwide will continue to operate as normal.

For CTG Duty Free, this agreement represents an expansion of its business base in two key economic zones of China, Hong Kong and Macau, aligning with Beijing's Greater Bay Area strategy. Company chairman Luke Zhang stated that this deal is a significant step in accelerating international business expansion and concretely supporting the policy of bringing Chinese brands to the global stage.

refer : asia.nikkei.com

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