China Tourism Group Duty Free agreed on 19 January to acquire DFS's travel retail stores in Hong Kong and Macau, together with exclusive Greater China rights to DFS brands and intellectual property, at an enterprise value of US$400m.
Why China Tourism Group Duty Free Corporation is buying DFS Greater China retail business
CTG said the purchase would expand its network across the Greater Bay Area, strengthen its position in the regional travel retail market and use Hong Kong and Macau as a base to promote Chinese brands internationally. LVMH and CTG also signed a memorandum of understanding on wider retail co-operation in Greater China.
Deal terms and financing
The acquisition price was set as the enterprise value less customary adjustments for cash, debt and working capital, capped at US$395m, and is funded in cash from internal resources. Conditional on closing, LVMH's Delphine SAS and a Miller family trust vehicle agreed to subscribe for up to 7,330,100 and 4,637,400 new H shares respectively at HK$77.21 each. A state-required valuation appraised the Macau and Hong Kong stores at about US$441m.
Regulatory approvals and timing
The deal was a discloseable transaction under Hong Kong listing rules and did not require a shareholder vote. CTG announced on 19 March 2026 that the acquisition and the share subscriptions had completed; the Canton Road (Sun Arcade) store was excluded because certain conditions were not met, and the estimated consideration was US$293.8m, subject to final adjustments.
Market context
DFS, owned by LVMH and co-founder Robert Miller, keeps its luxury travel retail operations outside Greater China. CTG Duty Free describes itself as a listed company controlled by a central state-owned enterprise.
